Rates
In which Rat offers a helping paw
Good time of day, humans!
We’re trying to catch up to the news, and maybe get a little bit ahead of what’s going to happen today…
One of the most important insights of Austrian economics is that actual malinvestment is done during the expansion phase, and bust just reveals it:
[mises.org] The Inevitable Bust: Why Economic Booms Contain the Seeds of Their Own Destruction
The rates have been so low for so long that most humans who could be burdened with bad investments already are (and cannot easily be unburdened regardless of what they’re saying). At best the cut is going to prop up speculative assets a bit — unless a whole new group of suckers step in.
I'm tempted towards a bit of tinfoil-hatting when the «stupid money» investors start eating major losses. But an ordinary combination of factors does explain how they keep making stupid, egotistical, obsequiously aspirational, fantasy-informed missteps.
A weird little tidbit about me due to reading Von Mises’ “Human Action” in my twenties in New York City, was that the classical radio station, WQXR, gave me 1-minute air time to complain about their leftist opinions. Afterwards i wondered, “WTF am I doing, I’m an artist what do I know about economics!?” After that I kept to aesthetics. On the other hand you as a cartoonist can go anywhere!