Prosper Australia

photo credit: atomicshark “The devil is in the details.” German Proverb A fascinating paper on Manhattan real estate in the 1920-39 era shows why property went down, stayed down and didn’t recover in real terms until 1960. ‘Real Estate Prices During the Roaring Twenties and the Great Depression’ by Nicholas and Scherbina makes a chilling [...]

photo credit: M J M Michael Hudson Free money creation to bail out America’s elite financial speculators, but not for Social Security or Medicare Only the “Crazies” Get the Bank Giveaway Right Kindly borrowed from Michael-Hudson.com Financial crashes were well understood for a hundred years after they became a normal financial phenomenon in the mid-19th [...]

photo credit: flatworldsedge Economic Answers Way off the Mark by Karl Williams Another neoclassical excuse-maker has just hit the airwaves, claiming to identify the causes of the GFC and even hailing Alan Greenspan as the prophet who was ignored as the GFC loomed! Once again, the fact that our economic system allows land speculation – [...]

photo credit: Express Monorail Australians have a disturbing mind-set: we prefer foreign experts over our own.  People like Steve Keen and Gavin Putland make waves overseas with their valuable commentary on The Great Australian Housing Bubble, but are ignored at home. So be it.  I will pander to your cultural cringe and offer an overseas [...]

Prof. Ross Garnaut gave the Hamer Oration at Melbourne University on Thursday. He pointed out that Australia has not experienced a recession for 17 years, a record for The Lucky Country. Such a period of unbroken growth is not just an Australian record, it is a world record. But one-way tickets have built-in risks for [...]

Now you’ve seen Steve Keen deliver a damaging analysis on the 7.30 report, listen to Professor Mason Gaffney call a Great Depression (on yesterday’s Renegade Economists) and why current economic policy will only prolong the negative outlook. Dr. Michael Hudson was Chief Economic Policy Adviser for the Kucinich for President campaign in 2007. He gave [...]

photo credit: sekundo Throw out the theory! That’s what policy makers are doing world-wide. From neo-liberalism to neo-handouts, one must ask what has happened to confidence in free market theory? Which leader in the western world will stand up? Failure to address the fundamental cause of this bust, the irrational expectations inherent in the lure [...]

photo credit: PhotoGraham That is the call as the bankers bailout of US$700bn gets rejected by US Congress. Meanwhile the US Fed has the printing presses running at just about as much – US$630bn. Kohler says: Essentially Congress has ensured that for the moment at least the crisis will be treated by money printing instead [...]

photo credit: betta design The $840bn bailout of US banks provides the US Treasury with a unique opportunity. Will the as yet unnamed new Federal agency (which we will call the Bailout Agency), charged with the responsibility for selling off the bad debts of risk-bending bankers, use this money to reduce the chance of future [...]

photo credit: amirjina Can someone please write in their diary June 2024? Because that’s when we are going to start warning about the next big bailout for bankers. If we do not learn from the horrors of this downturn and collect the economic rent that accrues to land, then the next 18 year cycle will [...]