Inflation is widely misunderstood by the public. Even economists tend to have a hard time coming to a general agreement to the true definition of inflation. When you ask the person on the street what inflation is they usually respond by saying the “price of things going up” which is more of a
When the world financial system failed in 2008, world governments intervened decisively. Guided by Keynesian economics teams with impeccable credentials, they intended not only to “stimulate” the economy, but to “jolt” it back to borrowing and spending as usual. All of these actions were taken from a playbook devised by British economist John Maynard Keynes, author of The General Theory of Employment, Interest, and Money and by far the most influential social thinker of the past century.
But . . . not all economists agree. Following the Crash of 2008, some critics of Keynesianism ask: Isn’t the root problem that Americans have borrowed too much? Will even more borrowing, this time government borrowing to support deficit spending, really help us out of the bind we are in?
The problem isn’t just in Europe. Like the ECB, the Federal Reserve also has tried to goose growth with easy-money policies.
But that’s like pushing on a string. Maybe there are times that the financial system needs more liquidity, but folks shouldn’t labor under the impression that printing more money solves the structural problems caused by too much spending, too high taxes, and too onerous levels of regulation.
And it’s quite possible, of course, that easy-money policies actually undermine long-run prosperity by creating bubbles.
If the lender Koevary chooses moves their pricing or another lender becomes more attractive he must obtain a new appraisal for that new lender thus doubling the cost. Koevary told me that the big banks now control a lot of the third party appraisal procurement companies which ultimately gives them the control over the appraisers contrary to the laws intent. This is driving business to the banks and cutting out the brokers or other small players.
An additional;unintended consequence of a bill that was supposed to lessen the control of big lenders has shrunk the amount of lenders and greatly enlarged the share of the market for big players.
Through the years, Bernard Madoff, the convicted ponzi schemer who defrauded his investors, “generously” donated millions of dollars to charity — cancer research, hospitals, theaters, schools, and more. At least one of these charitable organizations invested with Mr. Madoff, where the invested funds disappeared.But Madoff is not the only one who gives money to people after first taking it from them. Today’s political leaders win votes and plaudits by giving goodies to little Johnny, but they don’t bother to tell little Johnny that they’re putting it all on his credit card.
Everybody knows that the new health reform program is expensive. But just how expensive is it?
Start with the direct costs. The Congressional Budget Office estimates that spending for all the different parts of ObamaCare (health insurance subsidies, Medicaid expansion, administrative costs, etc.) will come to about $2 trillion over the next ten years. That works out to about $2,000 for every household in America, every year.