ABSTRACT
This chapter discusses the degree of political control of business at the highest levels and of the institutions that were formed to facilitate laissez-faire capitalism. Capital is a unique contributor to the creation of economic value. Cheap capital never becomes healthy or productive or successful capital spontaneously. It is far more likely to become an inefficient and failing industry. The chapter criticizes markets for commodities and for financial assets, it is not enough to point out peculiar and inexplicable events. The yields on Treasury debt are, moreover, the benchmark against which all other financial assets are measured. The two grand mortgage lenders—the Federal National Mortgage Association and the Federal Home Loan Board—don't seem to make any money either. The only pricing factors with the capacity to cause rapid price changes are exchange rates and the purchasing power of money, because the cost of crude oil and gasoline are real resource costs.
