Fracking: Technological Miracle or Cheap Money Malinvestment?
I’m no Austrian but the concept of malinvestment would seem to apply to shale oil and gas if it applies to anything. It was produced by money illusion, faulty monetary policy and it will end as all booms do – in bust. The implications of that are greater than most people believe. Just as they thought sub-prime real estate loans would be contained so they believe that the fallout from the shale bust will be confined to the oil industry. I have serious doubts about that and you should too.