Mises.org readers were alerted to the housing bubble in Norway in January 2013 . It now appears that the bubble is starting to crash. Brokers have had to recalibrate after more than five years of a booming market where homes sold for as much as 50 percent above the asking price. During the peak, DNB Eiendom’s Dahl said she sold a property outside
It now appears that Housing Bubble II is cooling. After the Fed drove mortgage rates down to around 3.35% in May for a 30 year fixed-rate mortgage, home prices started climbing. In the sand states of California, Nevada, Arizona, and Florida, among the hardest hit areas, home prices increased by an average of about 25%. Bloomberg reports that
I have been talking about the Housing Bubble in Norway for a while and about one year ago I wrote an article here . The story was picked up in by a variety of publications including here . It turns out that the bubble has spread over the entire Nortic region. It caused quite a stir in Norway and was reported on in the leading business publications
The Wall Street Journal ran a very optimistic article on the rising prices for Skyscrapers and new construction in New York. This is my letter to the editor in response. Dear Editor, Wall Street Journal : So what does “Skyscraper Prices Head North” C1, 6/10 tell us? Have perhaps Dr. Bernanke’s “green shoots” from 2008-9 finally taken root?
For years we have been told that Japan is a fallen giant that was crippled by the stock market crash of 1989 and has yet to recover. The new Japanese political leadership has used this story to argue for higher inflation targets that would double the money supply and national debt to get Japan out of its malaise. This article from the New York
Murray Rothbard argued that the cause of the Great Depression was the result of Herbert Hoover’s New Deal policies which sought to keep wages and profits high. Robert Higgs, Richard Vedder and Lowell Gallaway extended this thesis to FDR’s New Deal policies which created artificially high prices and profits and prevented the normal market
Thomas J. DiLorenzo in this 2004 Mises Daily, “ The New Deal Debunked (again) ”, provides detail on the work by Cole and Ohanian behind the Ohanian video highlighted on Mark Thornton’s Circle Bastiat post “ The Rothbard/Higgs/Vedder and Gallaway Thesis . Highlights from DiLorenzo: Macroeconomic model builders have finally realized what Henry
Here is a great 5 minute video where David Stockman is interviewed. It provides the historical backdrop of Ronald Reagan and the “deficits don’t matter” Republican ideology. The Fed’s bond bubble is discussed. It would make a great classroom video presentation and discussion. Most online versions of this video have the host’s final comments
Peter Schiff makes a few calculations on Japan’s anti-deflation campaign. In the years following the global financial crisis, economists and investors have gotten very comfortable with very high, and seemingly persistent, government debt. The nonchalance may be underpinned by the assumption that globally significant countries that can print their
Earlier this month I chatted with with fellow economist Morgan Reynolds on his Reynolds Reveal . Issues ranged from slow recovery to debt and deficits and empirical work with a good theoretical foundation by Gwarnty, Lawson, and Holcombe showing how government spending in excess 15% of GDP retards economic growth (see here ). Vedder and Gallaway
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
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