Background

From the perspective of the Austrian School of Economics, most measures after the financial crisis 2007/08 were more populist activism and badly deliberated gut-rections of politicians which lacked insight into - not to mention solutions for - its true causes which are essentially a dysfunctional system of tax incentives for debt making and well-intended but ill-advised government debt promotion schemes e.g. for sub-prime credit, leading to reckless borrowing and artificial asset price rises.

Case-Shiller Index

Recently, a key leading indicator of the last crisis, the Case-Schiller Index, reached again the level of 2007 which  signals danger. In simple language, the index shows how much the builder of a new house stands to make in the secondary house market. An index of 200 point effectively is a license to double your money. Question is: How long can such a systemic flaw last? What level can this disproportionate profit opportunity reach?

Here is also a link to a chart with the current index values.

July 2018

The chart below shows the index value as of July 2018, still rising, and just reaching the 2006 hights.