Free Republic

With all the rhetoric about how subprime mortgage lenders have behaved badly and dangerously, few if any well-known writers have pointed out how impossible it becomes to avoid a Fed-induced monetary boom. Instead, pundits dismiss the Austrian Business Cycle, saying that entrepreneurs can easily detect "funny money." After all, hasn't it happened before? The whole entrepreneurial class is, as it were, in the position of a masterbuilder whose task it is to erect a building out of a limited supply of building materials. If this man overestimates the quantity of the available supply, he drafts a plan for the execution...