Some Austrian Economic Analysis and Advice

"Bankruptcy was the stimulus that we needed in the case of AIG," says Ron Paul — Bankruptcy Is Economic Stimulus. "More bankruptcies would clean out malinvested resources and enable economic growth again."

"Timothy Geithner's plan to save the big banks will be a success," says Gary North — Save the Big Banks, Trash the Dollar. "The plan will hurt taxpayers, and it will lead to severe price inflation. It will not revive the faltering economy in 2009. It will not restore the housing market. Family wealth will continue to decline."

Barry Ritholtz says that "America’s economy is getting a little smaller" and "that U.S. consumers are going to engage in less-conspicuous consumption than they used to" — Downsizing America. This means that "the unhealthy reliance on credit seems to be going away" and that "the massive misallocation of capital in society has also been revealed," meaning a return to "making money the old-fashioned way – earning it." He adds that for those "looking for value stocks, artwork, rare collectible automobiles, or vacation properties – there is many a deal to be had."

Noting "the danger of hyperinflation, and how money could become worthless, reducing society to barter and food riots," Joe Schembrie suggests that "now is the best time to buy an RV" — Get a Van!

[links via LewRockwell.com]