Why Small Booms Cause Big Busts

I better go drain her off before she busts a gusset!

Yeah, but if somebody busts in, you know what they're going to find?

But primary product prices remain much more volatile than the prices of manufactured goods and services, causing large fluctuations in producers incomes. This exaggerates the effects of booms and busts.

Thus, the state s coffers (and hence spending) overflow during booms, but then collapse, forcing emergency retrenchment, during busts. Ironically, California s progressive tax and spending policies create such volatility that they destroy the state s ability to fund everything, even basic services from education to health for its most vulnerable citizens.

It was, in fact, the authorities clampdown on margin borrowing, together with a loss in confidence as global markets declined, that is thought to have triggered the market meltdown. And that, too, is a feature of a market dominated by small traders the herding behavior that fuels major booms and busts becomes more prevalent, because individuals assume that others have better information.

A member of the Council of Ministers divided the country into Ramzada (believers in the Hindu god Ram) and Haramzada (bastards) and was allowed to retain her post. Another BJP legislator declared Mahatma Gandhi s Hindu nationalist assassin to be a patriot, while a fringe party in the Modi camp announced a campaign to install the assassin s busts throughout the country.

Karl Marx oversold socialism, but he was right in claiming that globalization, unfettered financial capitalism, and redistribution of income and wealth from labor to capital could lead capitalism to self destruct. As he argued, unregulated capitalism can lead to regular bouts of over capacity, under consumption, and the recurrence of destructive financial crises, fueled by credit bubbles and asset price booms and busts.

In its mail order catalogue, a company headed by the president of a small allegedly pro Nazi group was offering a range of German National Socialist Party, SS, Waffen SS, Celtic, nationalist, Bonapartist or esoteric style badges, pins, armbands, belt buckles, signet rings, busts of Hitler, knives and caps, as well as a subscription voucher for the soon to be published book by the late Léon Degrelle entitled Hitler pour mille ans .