AC, good read "...Friedrich von Hayek, 1974 Nobel Laureate, was the only academic economist who wrote prior to the Great Depression that a crisis and downturn in America were imminent. Interest rates in the world would not fall, he wrote, until the American boom collapsed. And "the boom will collapse within the next few months". This prediction, printed in the Austrian Institute of Economic Research Report, February, 1929, generated interest in Austrian economics and Hayek was offered a Professorship at the London School of Economics in the early 1930s.
Ludwig von Mises, also an Austrian, anticipated a worldwide depression in the 1930s, as reported by Fritz Machlup, Mises' assistant at the time. Mises' wife Margit wrote, in her husband's biography, that in the summer of 1929 he had rejected a high position in Kredit Anstalt, one of the largest banks in Europe at the time. His explanation was "a great crash is coming and I do not want my name in any way connected with it". Less than two years later, Kredit Anstalt was bankrupt...." from gold-eagle.com mike |
