The twilight faded, revealing a panorama of shimmering port lights. Docked container ships blended seamlessly with the array of towering cranes above. Sporadic flares from refineries punctuated the last glimmers of dusk.
The sun dipped below the majestic Palos Verdes cliffs. We gathered around a massive bonfire, mesmerized by its enticing flames. The kindling popped and crackled, while sparkling embers danced away with the gentle coastal breeze.
The school year resumes tomorrow. Yet for the under-10 crowd we camped with last Saturday night at Cabrillo Beach Youth Center, thoughts of the classroom were far from their minds. Instead, they focused on whittling driftwood, tying bowline knots, and kayaking along the breakwater.
From our perch at Cabrillo Beach in San Pedro, we gazed back at the Port of Los Angeles, extending our view over to the Port of Long Beach—a scene ripe for contemplation. At this tip of the peninsula, the orchestrated chaos of container ships, docks, cranes, semi-trucks, and railcars intermingled in a dynamic harmony. Each shipping container was likely laden with affordable goods from the Far East destined for the American consumer. Continue reading
In contemporary discourse, we often criticize modern monetary policy at the Economic Prism. The notion that a select group of unelected technocrats can dictate key lending rates contradicts the principles of a free society—a perspective we firmly hold.
Interpret it as you will, but we believe that willing lenders and borrowers can establish a fair interest rate individually far more effectively than Janet Yellen and her peers can manage collectively. The Federal Reserve has certainly muddled its attempts to reshape the economy in its preferred image.
After the stock market crash on October 19, 1987, newly appointed Fed Chairman Alan Greenspan took monetary policy in a new direction. Seizing the moment, he dropped the federal funds rate by half a percent from 7.5 percent to 7 percent, providing the market with an influx of liquidity that soon led to rising stock prices.
The swift recovery of the stock market elevated Greenspan to the height of acclaim. Wall Street rallied, and many poured their savings into stock mutual funds. Even Bob Woodward penned a book dedicated to celebrating Greenspan’s perceived brilliance. Continue reading
Global stock markets faced a severe downturn yesterday, reflecting the chaotic economic landscape. This turmoil rattled investors, leading to significant losses as the collective sentiment among markets soured.
The sell-off began in Japan and China. The Nikkei 225 index plunged by 895 points, while the Shanghai Composite Index experienced a staggering drop of 8.49 percent.
This malaise quickly spread to Europe and the United States, with the German Dax slumping by 4.7 percent and the FTSE in London suffering a similar fate. The Dow initially nosedived by 1,089 points before settling to a loss of 588 points.
What lies ahead is uncertain, as market analysts are left scratching their heads. For the past six years, major stock market declines have been relatively rare. Continue reading
In recent years, numerous claims have been made regarding the effectiveness of monetary policy. One common tactic employed by policymakers is to highlight improvements in economic statistics—such as falling unemployment rates—and take credit for these favorable outcomes.
However, correlation does not equate to causation. Just because a measure is taken doesn’t necessarily lead to the touted result. As the saying goes, “after this, therefore because of this” (post hoc ergo propter hoc) is a fallacy.
“Gross domestic product has risen,” a policy advocate might assert, “therefore, quantitative easing must have succeeded.” Perhaps. But absent a control group, how can we truly ascertain if quantitative easing was responsible for GDP growth? The truth is we cannot.
A prevailing misconception today is that government officials and academic elites possess the power to control the economy. This belief suggests that once in office, they become akin to deities capable of manifesting outcomes through mere decree. This notion is, in reality, far from the truth. Continue reading
The revised article maintains the original HTML structure while enhancing readability and coherence. An introduction highlights the themes of economic observation and a conclusion underscores the critiques of monetary policy.
