Tag Archives: The Great Deformation
Tracking “Bubble Finance” Risks in a Single Chart
In his 712-page tour de force, The Great Deformation, David Stockman dissects America’s descent into the present era of “bubble finance.” He describes the housing bubble’s early stages as follows: The American savings deficit was transparent after the turn of … Continue reading
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Tagged Arthur Burns, Ben Bernanke, bubble finance, David Stockman, full valuation, Greenspan, Greenspan put, Janet Yellen, price-to-earnings, price-to-peak-earnings, SPY, stock valuation indicator, The Great Deformation, William McChesney Martin
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Why We Shouldn’t Trust the Fed’s Inflation Target
Awhile back, I thought it might be interesting to create one of those island economy stories to demonstrate a problem with the Fed’s policy framework. I finally got around to it over the past week, after reading an article on the … Continue reading
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Tagged confirmation bias, David Stockman, Federal Reserve, heuristics and biases, inflation target, monetary policy, rational agents, stabilization policies, The Great Deformation, William McChesney Martin
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