Discussion in 'Economy' started by Toro, Sep 7, 2009.
A great read by Paul Krugman. A few exerts below.
Paul Krugman is a perfect contra-indicator. He's the Wrong Way Corrigan and Professor Backwards. I have never read a guy more out of touch with reality and so totally wrong about economics.
HOW DO YOU HAVE "FREE MARKETS" WHEN YOU HAVE CRA, FREDDIE AND FANNIE DICTATING WHAT BANKS MUST LOAN?
HOW DO YOU HAVE FREE MARKETS WHEN DEMOCRATS CONTINUE TO STEER FREDDIE AND FANNIE OFF THE CLIFF TAKING THE US HOUSING MARKET DOWN WITH THEM?
Except that the CRA had little to do with the housing debacle and the GSEs a minor part.
"if you laid all the economists in the world end to end, they still wouldn't reach a conclusion."- author unknown (to me, anyway)
Toro, you may recall how I feel about free market capitalistas and their quickness to be wrong while clinging to theoretical bullshit as justifications for errors. I'm glad to see that it's possible for some to see the flaw in such blind pompousness after all.
Empiricism > ideology
My aunt once told me, "Frank, never take advise from people who don't know what the fuck they're talking about."
She was a very wise lady
"in the long run, we're all dead"- j.m. keynes
Things are tough all around. Mrs. BBD failed to hand over my allowance this week... If she doesn't come across pretty soon I'm going to have to start pulling some funds out of my "secret sock" that I keep hidden behind the War and Peace book on the bookcase in the library. I move the "secret sock" every week to a new location so none of you bozos try to sneak in on me and leave me "sockless".
"They turned a blind eye to the limitations of human rationality that often lead to bubbles and busts" - Krugman
This quote has me confused. Krugman called for the Fed to create a housing bubble after the dot-com bust to pull us out of the recession, but now he implies that irrationality in the market creates bubbles? Since the Federal Reserve is the anti-thesis to the free market how does Krugman come to this conclusion?
I think Jeffrey Tucker of the Mises Institute had an interesting response to this article.
You don't want to read this - Mises Economics Blog
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