Subprime Meltdown: It's All About Money: Implications for Commercial Property Investments

Dr. Olson carries his earlier themes through today’s liquidity crisis, based on new work by Levy Economics Institute, BIS and New Monetarism by David Roche. Dr. Olson traces: 70’s abandonment of the gold standard unleashing a flood of global liquidity; 80s & 90s regulatory hands-on response to boom and bust of liquidity and property, ruining thousands of lenders, borrowers and peoples’ lives, one hand not knowing or caring what others were doing. The US reacted to its mistakes - taking regulatory hands off the creation of asset securitized credit money – again unleashing liquidity, claiming the resulting deficits didn’t matter or, worse, were a source of strength, with tragic effects. The current liquidity crisis is outside regulatory discipline; a “Ponzi scheme” of LBO and asset securitization. Dr. Olson calls for leadership and action – a system of sound money validating the markets choice of a common medium of exchange and stopping government meddling with our currency.