The Free Market Center
Introduction to Economic Crises
Today's crises arise from yesterday's solutions.
When examined closely we find that nearly all economic "crises" occur as the result of previous solutions to "problems" in markets.
Economic crises seem to occur with significant regularity. The topic of economic crises takes up a lot of media time these days. So I will devote space here to discussing the whys and wherefores of economic crises.
The Fraud Enforcement and Recovery Act of 2009 created the Financial Crisis Inquiry Commission (FCIC) to find the causes of the financial crisis of 2008. They have started the process, however, by looking in all the wrong places. I wrote this paper to guide them (or any reader) to understanding the real source of the problem.
This graphic presentation examines the similarities between the economic "crisis" of 2008 (actually beginning in 2007) and the Great Depression.
The presentation of the New Depression will not fit on this screen. To view the presentation, please enter this page with a larger monitor.
Because of the many distortions introduced into the real estate market by the banking system, government spending and regulation, real estate plays a role of unwarranted importance in the economy of the United States. At some time The Free Market Center may post a page dedicated to real estate; for now we will focus on its role in economic crises.
Although financial crisis of 2008 has its roots in the U. S. Banking system, many see it as a problem in the real estate market. Refer to The Roots of a Financial Crisis.
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