Friday, May 20, 2016

Robusterians: Foolish Granularitans ??...

Shifts and Shocks, Crash and Burn !!
Martin Wolf is an experienced, highly-respected, economic journalist for the Financial Times.  Mr. Wolf has recently published a book ("The Shifts and Shocks: What We've Learned - and Have Still to Learn - from the Financial Crisis") which explores many of the financial and regulatory mis-steps which led to the global recession.

In commenting on the book, Wolf had this to say about the ineffectiveness of our - still very much alive and preening - gaggle of honking "robusterians":
"The financial crisis and the years of economic malaise that followed represent profound failures of the economy and of policy. Above all, they were failures of understanding.  Policy makers did not expect the crisis that began in 2007."  

"On all this they were proved wrong.... [having failed to understand] how financial systems actually work, as opposed to how too many economists believed they did..."

Remind you of anyone?

** granularitan - Eng., noun; derived from the word "granularity", meaning small of mind, petty, minor, minute, inconsequential; rhymes with "charlatan".

1 comment:

Anonymous said...

And of course there is the Federal Reserve Board who are indecisive and fail to recognize that they give the appearance of not knowing what to do or when to take action. Rather than doing what needs to be done they play the game of dropping hints at what action they might take so they can get the pulse of the economy and gauge the reaction of the business community. Why is it that individuals are placed in such important positions yet refuse to make the hard decisions for fear of being wrong and/or criticized for what they do? Don't they realize that it is their job to review all the facts, look at alternatives, determine possible scenarios and outcomes and then make a decision? What is it going to take for them to realize that they are dealing with the lives of individuals who need to make their own decisions on how they are going to meet their responsibilities to maintain a standard of living for their families? What is unfortunate is that these decisions makers at the Fed will leave their jobs, write a book, go work for another Lehman Brothers and never have to worry about where their next dollar is coming from. And yet their inept decisions will affect hard working Americans everyday for the rest of their lives.