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Recent Posts

Economic Illiterate Peter Schiff’s Senseless ‘Deflation Is Good’ Argument Debunked

Right off the bat, Schiff once again displays his enormous ignorance in stating that the prices of electronic goods such as computers, TVs, mobile phones etc. drop every year but sales are not adversely affected. Well, Peter – for your information – the price decreases are mainly due to technological advancements and production efficiency improvements. [...]

Nouriel Roubini: Rapid economic recovery unlikely

AEI Event: ” The Deflating Bubble, Part VI: The Lessons of the Bubble and Crisis,” Cosponsored by the Professional Risk Managers’ International Association, October 22, 2009 www.aei.org Credit markets have recovered, although they still reflect massive government financial intervention. The financial panic of 2008 and 2009 has passed, though now bank failures are notably increasing. The net worth of the Federal Deposit Insurance Corporation is dropping, and estimates for its deficit are growing, but its obligations are ultimately US Treasury obligations. Average house prices seem to be stabilizing, but commercial real estate prices are dropping. Huge losses from the deflation of the great twenty-first-century bubble have been recognized or realized, and though more remain, financial markets have regained their appetite for risk. At this event, our expert Deflating Bubble panel defined the lessons of the whole twenty-first-century financial experience and made related recommendations for future financial policy. Speakers included AEI economists Desmond Lachman and John H. Makin; New York University professor of economics Nouriel Roubini; R. Christopher Whalen, managing director of Institutional Risk Analytics; and Thomas Zimmerman, managing director at UBS Investment Bank. AEI resident fellow Alex J. Pollock [...]