Ludwig von Mises

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Less Than Zero: How The Fed Killed Saving

It destroyed the incentive to do it
Friday, June 2, 2017, 6:27 PM

Savings accounts were created to provide an incentive for people to plan for the future. Put money away today, let it grow through the miracle of compounding interest, and have more tomorrow.

Prudent savings is essential to a healthy economy. It offers resilience during downturns, and provides seed capital for productive enterprise.

But we are no longer a nation of savers. The Federal Reserve has killed the incentive to be one. » Read more

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Why This Market Needs To Crash

And likely will
Friday, March 24, 2017, 10:12 PM

Like an old vinyl record with a well-worn groove, the needle skipping merrily back to the same track over and over again, we repeat: Today's markets are dangerously overpriced.

Strange as it may sound, it's our opinion that the sooner a major market correction happens, the better. Crash now while there’s still chance of picking up the pieces afterwards and making something useful from them. The longer we push off the inevitable fall, the more destructive it will be and the more difficult it will be to recover from. » Read more

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Making The Wrong Choices For The Wrong Reasons

Why we're on a collision-course with crisis
Friday, July 22, 2016, 8:54 PM

Life is full of examples where folks make bad choices for noble reasons. Not every decision is a winner: sometimes you make the right call, sometimes you don't.

  • In 1962, Decca Records passed on signing a young new band because it thought that guitar-based groups were falling out of favor. That band was The Beatles.
  • Napolean Bonaparte calculated he could conquer Russia by assembling one of the largest invading forces the world has ever seen. He marched towards Moscow in the summer of 1812 with over 650,000 troops. Less than six months later, he retreated in failure, his forces decimated down to a mere 27,000 effective soldiers.
  • 1985 217 separate investors turned down an entrepreneur trying to raise the relatively modest sum of $1.6 million for his vision of transforming a daily routine shared by millions around the world. That company? Starbucks.  

In these cases, those making the decision made what they felt was the best choice given the information available to them at the time. That's completely understandable and defensible. Fate is fickle, and no one is 100% right 100% of the time.

But what's much harder to condone -- and this is the focus of this article -- is when people embrace the wrong decision even when they have ample evidence and comprehension that doing so runs counter to their welfare. » Read more