2008 Set the Stage for 2025
Last week Peter joined Tom Clougherty, Executive Director of the Institute of Economic Affairs, to discuss his unwavering view of free-market economics, the enduring threats from misguided government policies, and the urgent need for economic reform. Throughout the conversation, Peter and Tom highlight the consequences of central bank intervention, the artificial distortion of markets, and the serious risks posed by escalating reliance on speculative assets like cryptocurrencies.
Peter starts by explaining that his skepticism of government intervention stems from correctly anticipating the 2008 financial crisis. Peter foresaw how reckless monetary policy by the Federal Reserve and the moral hazards created by entities like Freddie Mac and Fannie Mae inflated an unsustainable housing bubble:
I could see that we had a huge housing bubble that was unsustainable. But I also saw how the housing wealth was impacting the economy and how people were consuming more and saving less. And the whole economy was distorted based on the illusion of wealth that didn’t really exist. And I knew that there was a lot of fraud inherent in the mortgage market and the housing market based on the government’s involvement. And that I knew that eventually rates would rise, teaser rates would reset, housing prices would crash, and it would bring down the banks that financed it.
He emphasizes how mainstream explanations for the crisis wrongly blamed capitalism and private-sector greed. Instead, he squarely identifies central banks and loose monetary
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
