America’s Great Depression section XII

This is the final chapter; a 25-question final covering the entire book will be posted next Saturday. If you have any questions about any of the various concepts involved, this would be the right time to ask them. And on a tangential note, Mark Cuban explains inflationary credit expansion in action:

With the credit market on the fritz, the other option was to add investors and just pay cash. However, if we were going to pay cash, I was not going to bid anywhere near 1 Billion dollars for the assets.

Easy credit doesn’t change the inherent value of an asset being purchased with it, it merely increases the monetary price.