The book's crucial assumption is that “the market” does have a central value and that the world of stock markets is a “mean reverting” world. As a consequence, the market can be over-valued or under-valued but will, over time, return to its central value. Words: 1317
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Antal Fekete: The Fed Inadvertently Steering Economy on Road to Hell (+2K Views)
I would welcome a public debate of my thesis that risk-free bond speculation suppresses the rate of interest and destroys capital in the process. I have challenged neo-classical economists who still consider the open-market operations of the Fed as a ‘refined tool to manage the national economy’. I want them, instead, to see in open-market operations the cancer of the economy responsible for the withering of the world’s prosperity. So far my challenge has fallen upon deaf ears. Words: 2854
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