malinvestments

The remedy to the distortions credit expansion would have been the fast liquidation of malinvestments, banks, and governments.

As bankruptcies are not allowed to happen, the liquidation of malinvestments was slowed down.

They remained stuck in what essentially were malinvestments, especially in an overblown financial sector.

When the malinvestments became apparent, the market value of these investments dropped sharply.

As prices get distorted, malinvestments, or investments that should not have been made under normal market conditions, accumulate.

They are what Hayek would call "malinvestments" , investments in capacity that no one is willing to pay for or wait for.

"He believed that boom-time malinvestments were responsible for the subsequent bust" : "be responsible for"

But it is the boom times that play host to the plague of malinvestments, overconsumption, and misdirected production.

In the last cycle, malinvestments in the booming housing markets contrasted with important bottlenecks such as in the commodity sector.

As malinvestments got liquidated, companies went bust and people lost their bubble jobs.

They favor a rapid sale of malinvestments, setting free savings and factors of production.

And we had a lot of malinvestments. Companies were created that never should have existed.

The ownership of malinvestments and the losses resulting from them were to a great part socialized