Saturday, 3 January 2009

Follow Them ... And Lose Your Shirt (Part 2)

Drake Bennett at The Boston Globe writes:

''THE DEEPENING ECONOMIC downturn has been hard on a lot of people, but it has been hard in a particular way for economists. For most of us, pain and apprehension have been mixed with a sense of grim amazement at the complexity of what has unfolded: the dense, invisible lattice connecting house prices to insurance companies to job losses to car sales, the inscrutability of the financial instruments that helped to spread the poison, the sense that the ratings agencies and regulatory bodies were overmatched by events, the wild gyrations of the stock market in the past few months. It's hard enough to understand what's happening, and it seems absurd to think we could have seen it coming beforehand. The vast majority of us, after all, are not experts ...

But academic economists are. And with very few exceptions, they did not predict the crisis, either.´´

here to read the entire article. Very good.

1 comment:

  1. Estoy leyendo su blog. Hay cosas que no me convencen pero en general me parece que lo debería escribir en español para que todos entendamos mejor. De cualquier forma, está bien.

    Me encantó ese artículo. Puede explicar un poco más sobre lo de Keynes que Ud. mencionó en un post ayer? (si le toca en inglés, hágale! jajaja)

    Saludos, Juan D.