The Trade Cycle | Why is there a Boom and Bust?
#economics #businesscycle #interestrates
The role of interest rates allocating resources is critical to the trade cycle. Booms and busts begin when interest is manipulated. Lowering the rate might stimulate the economy in the short run. This will give the appearance of profitability. However, the manipulation misallocated resources. Projects that wouldn’t have been undertaken under natural conditions are taken under the manipulated rates. An adjustment will happen eventually.
The upward movement of certain projects can’t continue. The upward trajectory can continue if the public thinks the rise of prices will stop. Panic sets in when they see they will not. Unjustified investments will come to a halt. This will cause the end of the boom. At most, the public will realize the currency is losing value and spend it while they can. This is just a crack up boom and can’t last either.
Read More: https://mrdevinney.com/the-trade-cycle/
-
3:46:56
The Quartering
5 hours agoJoe Rogan & Donald Trump LIVE Episode Reaction & Commentary
93.9K158 -
2:38:45
SNEAKO
5 hours agoI WAS ATTACKED!!!
62K12 -
2:55:11
Fresh and Fit
9 hours agoLil Durk Arrested For Murder-For-Hire, Diddy Case, Project Ester & MORE
88.8K47 -
3:58:27
SynthTrax & DJ Cheezus Livestreams
16 hours agoFriday Night HALLOWAVE PIZZA PARTY DJ MIX Livestream Featuring The Art of EricJohnPizzaArtist 5:00pm PST - 8:00pm EST
67.1K15 -
46:53
Man in America
11 hours agoCan the UN Exploit an Election Crisis to SEIZE CONTROL of the USA? w/ Alex Newman
46.9K14 -
3:06:49
tacetmort3m
13 hours ago🔴 LIVE - NOT ABANDONING THIS GAME LETS CONTINUE - GHOST OF TSUSHIMA - PART 5
45.1K1 -
1:47:06
Flyover Conservatives
1 day agoBehind the Scenes with Eric Trump, Clay Clark on Elections, Alfie Oakes on America's Food Source, Alexandra Bougher on Parents’ Rights, and Ivan Raiklin on Nov 6! | FOC Show
52.6K4 -
1:31:19
Glenn Greenwald
10 hours agoMeltdown Over Non-Endorsements From WaPo & LA Times; Why Can't The U.S. Count Votes In One Night? Former Addict Saved By Mission To Rescue Street Dogs | SYSTEM UPDATE #358
111K77 -
2:22:09
Roseanne Barr
17 hours ago $86.50 earnedLara Logan is Fearless | The Roseanne Barr Podcast #71
126K143 -
4:32:34
Nerdrotic
12 hours ago $54.26 earnedRey Movie is TOAST! Blade Canceled, The End of Woke Hollywood! | Friday Night Tights 325
121K38