The follies and fallacies of Chicago​ economics

27 May, 2018 at 10:29 | Posted in Economics | 2 Comments



  1. I think that bubbles are much more than a emotional behavior of economic actors. after tulip bubble which is possible to encircle in emotional theory, occurs two more bubbles in history. First, in France 1919 the banque royal bubble which was promoted by france king, and directed by a financial expert of the moment John Law. In this case exist one actor, the king who was thinking in accumulate gold and while the bubble grow was rationally derived to expand the bubble to augment his gold, while little actors were derived under emotional determinants.

    Parallelly another bubble was beginning in London, the South Sea bubble, this bubble was created in full conscience of France bubble results. in this second bubble the state actors, the king and Kent duke,collect all the gold of London public in the process. King delegates stand up in parliament defying the public anger but were defeated and power fall in hands of Walpole a parliamentary who was the first first ministry.

    The emotional hipotesis do not explain bubble behavior but state and state related actors uses emotions to expropriate public.

    In 2008 bubble was in front of American state George Bush, one operator of oil cartel, who was accumulating money from the oil bubble. who conducts oil speculation to high prices which impulse the turbulence in house market.

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