Mish is a devotee, and a darned good one, of the Austrian School of Economics, with his particular insights into the difference between credit and money, and the unappreciated effect of credit in this economy.
He does err here, in this post on the Chinese Real Estate Bubble:
The FED distorts the credit markets against the many to benefit the few. Fact. That this is wrong, well, a value-neutral science won't go there.
While the topic is the Real Estate bubble in China, as a communist country, China might exercise a useful solution to the real estate bubble. They have already done this to some extent, and that is they have limited how many condos a person can have, trying to suppress demand. Didn't work.
But as this bubble does burst, instead of massive nonsense valuations and power associated with that in the hands of the very few, simply write very aggressive homesteading laws that a condo empty for 90 days belongs to whoever is squatting in it. Within about three months the slate is clear and that is one heck of a reset button.
The people who lost their excess condos still have plenty, and no one will lose "all." It is what we should have done in USA in 2008.
Feel free to forward this by email to three of your friends.
He does err here, in this post on the Chinese Real Estate Bubble:
Logic alone suggests the notion that anything can be centrally planned without huge damaging consequences is as ridiculous as it is arrogant. History proves it.Well, that would be the German Historical School of Economics. They merely catalog disasters and don't know why. Since history is not science, it proves nothing. The Austrians understand the reasons why, they can prove why, but they won't make value judgments.
The FED distorts the credit markets against the many to benefit the few. Fact. That this is wrong, well, a value-neutral science won't go there.
While the topic is the Real Estate bubble in China, as a communist country, China might exercise a useful solution to the real estate bubble. They have already done this to some extent, and that is they have limited how many condos a person can have, trying to suppress demand. Didn't work.
But as this bubble does burst, instead of massive nonsense valuations and power associated with that in the hands of the very few, simply write very aggressive homesteading laws that a condo empty for 90 days belongs to whoever is squatting in it. Within about three months the slate is clear and that is one heck of a reset button.
The people who lost their excess condos still have plenty, and no one will lose "all." It is what we should have done in USA in 2008.
Feel free to forward this by email to three of your friends.
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