Notes from Howard's Sabbatical from Working. The name comes from a 1998 lunch conversation. Someone asked if everything man knew was on the web. I answered "no" and off the top of my head said "Fidel Castro's favorite color". About every 6-12 months I've searched for this. It doesn't show up in the first 50 Google results (this blog is finally first for that search), AskJeeves says it's: red.
It isn't often that Canada is at all a concern in U.S. affairs, but this time, it's a great article that I think you would like to read: http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=F60HFXVH0X92&preview=article&linkid=3674b687-3639-44f3-b688-b8d1ab2d6517&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d
Economists got it wrong and continue to get it wrong because the root cause of the global financial meltdown was Control Fraud executed on a massive scale by the senior managment of the mortgage underwriters, commercial banks and investment banks.
As there is no variable for criminal activity in any macroeconic equation that I am aware of, any attempt to have predicted in advance the meltdown, would have been difficult to impossible using pure economic theory. It is also why even post mortem, economists still seem to disagree about what happened and why.
I believe that unless Krugman (and other "economists") decides to admit that outright fraud and manipulation was at the core of the mortgage mess, not he, nor any economist, will ever be able to fully explain what happened.
2 comments:
It isn't often that Canada is at all a concern in U.S. affairs, but this time, it's a great article that I think you would like to read: http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=F60HFXVH0X92&preview=article&linkid=3674b687-3639-44f3-b688-b8d1ab2d6517&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d
Best regards,
MediaMentiosn
Economists got it wrong and continue to get it wrong because the root cause of the global financial meltdown was Control Fraud executed on a massive scale by the senior managment of the mortgage underwriters, commercial banks and investment banks.
As there is no variable for criminal activity in any macroeconic equation that I am aware of, any attempt to have predicted in advance the meltdown, would have been difficult to impossible using pure economic theory. It is also why even post mortem, economists still seem to disagree about what happened and why.
I believe that unless Krugman (and other "economists") decides to admit that outright fraud and manipulation was at the core of the mortgage mess, not he, nor any economist, will ever be able to fully explain what happened.
TT
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