Jan 6, 2011

Huerta de Soto on uninterrupted stock market growth

Uninterrupted stock market growth never indicates favorable economic conditions. Quite the contrary: all such growth provides the most unmistakable sign of credit expansion unbacked by real savings, expansion which feeds an artificial boom that will invariably culminate in a severe stock market crisis.

~Jesus Huerta de Soto, economist, Money, Bank Credit and Economic Cycles, 1997, pg. 462

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