ron paul has been promoting ludwig von mises’ austrian school of economics for 30 years….but only now are people paying attention…even wsj picking it up:

excerpt: 

We all know what happened next. Pretty much right out of Mises’s script, overleveraged banks (including Kreditanstalt) collapsed, businesses collapsed, employment collapsed. The brittle tree snapped. Following Mises’s logic, was this a failure of capitalism, or a failure of hubris?

Mises’s solution follows logically from his warnings. You can’t fix what’s broken by breaking it yet again. Stop the credit gavage. Stop inflating. Don’t encourage consumption, but rather encourage saving and the repayment of debt. Let all the lame businesses fail—no bailouts. (You see where I’m going with this.) The distortions must be removed or else the precipice from which the system will inevitably fall will simply grow higher and higher.

Mises started getting some much-deserved respect once “Theorie des Geldes” was finally published in English in 1934. It is unfortunate that it required such a disaster for people to take heed of what was the one predictive, scholarly explanation of what was happening.

But then, just Mises’s bad luck, along came John Maynard Keynes’s tome “The General Theory of Employment, Interest and Money” in 1936. Keynes was dapper, fresh and sophisticated. He even wrote in English! And the guy had chutzpah, fearlessly fighting the battle against unemployment by running the currency printing press and draining the government’s coffers.

He was the anti-Mises. So what if Keynes had lost his shirt in the stock-market crash. His book was peppered with fancy math (even Greek letters) and that meant rigor, modernity. To add insult to injury, Mises wasn’t even refuted by Keynes and his ilk. He was ignored.

http://online.wsj.com/article/SB20001424052748704471504574443600711779692.html

is this from today or a year ago?

excerpt:
Easy money wasn’t the only way government induced the bubble. The mortgage-bond market was the mechanism by which policy makers transformed home ownership into something that must be earned into something close to a civil right. The Community Reinvestment Act and projects by the Department of Housing and Urban Development, beginning in the Clinton years, couldn’t have been accomplished without the mortgage bond—which allowed banks to offload the increasingly risky mortgages to Wall Street, which in turn securitized them into triple-A rated bonds thanks to compliant ratings agencies.

The perversity of these efforts wasn’t merely that bonds packed with subprime loans received such high ratings. It was also that by inducing homeownership, the government was itself making homeownership less affordable. Because families without the real economic means to repay traditional 30-year mortgages were getting them, housing prices grew to artificially high levels.

This is where the real sin of Fannie Mae and Freddie Mac comes into play. Both were created by Congress to make housing affordable to the middle class. But when they began guaranteeing subprime loans, they actually began pricing out the working class from the market until the banking business responded with ways to make repayment of mortgages allegedly easier through adjustable rates loans that start off with low payments. But these loans, fully sanctioned by the government, were a ticking time bomb, as we’re all now so painfully aware.
http://online.wsj.com/article/SB10001424052748703363704574503404180541392.html

continuing with my atlas shrugged theme…here’s ‘director of office of the budget’ for the obama white house….this guy is right out of atlas shrugged…”the economy doesn’t like us right now and we need to somehow make the economy happy again”…..

also found out that his mentor is robert rubin…one of my 3 assholes of the financial apocalypse.

http://www.seattlepi.com/horsey/viewbydate.asp?ID=2008

be sure to read the comments on his site…lots of comments.

makes me want to crawl into my bomb shelter …

http://www.ritholtz.com/blog/2009/11/why-keep-geithner/

for those that don’t know…wesley mouch was one of the main spinless vague-speaking bureaucrats in ayn rand’s atlas shrugged.

timmy geithner is america’s wesley mouch…the central planner bureaucrat trying to ‘fix’ the economy with vagueness…

come on barack obama..where’s the change????…every day these asshole bankers are still in your white house you lose a little more credibility….fix the goddamn banks before you take on your pie-in-the-sky health for all beaurocrazy…

thanks for your flavor joe d.