Thursday, July 8, 2010

This Time is Different

THE advertisement warns of speculative financial bubbles. It mocks a group of gullible Frenchmen seduced into a silly, 18th-century investment scheme, noting that the modern shareholder, armed with superior information, can avoid the pitfalls of the past. “How different the position of the investor today!” the ad enthuses. It ran in The Saturday Evening Post on Sept. 14, 1929. A month later, the stock market crashed.
“Everyone wants to think they’re smarter than the poor souls in developing countries, and smarter than their predecessors,” says Carmen M. Reinhart, an economist at the University of Maryland. “They’re wrong. And we can prove it.” more

4 comments:

Anonymous said...

How many Economists does it take to screw in a light bulb?

First; Assume a ladder......




Best,

Rick "Boom n'Bust" Moffat

Echelon 133 said...

Nice article look to be really nice liberal people... You know professorial types. But have they ever started a company from scratch?

You know what "they" say. "Those who can DO. Those who can't TEACH.


Addy you are exempt.

I figure this will really get Gunnar going.

Gunnar Berg said...

Did they start a company from scratch? No. Neither did they create great art or music. Your point?

Entrepreneurs have a very narrow skill set. Starting a company from scratch only qualifies one to start a company from scratch. We send the pointy headed intellectuals to school so they can do our long-range planning for us.

Did you actually read the article? They are economic archeologists, helping us to learn from history. They started writing their book seven years ago, which predicted the bubble and collapse. And the next one. And the next one.

I'm done for a while. I gotta go. The tree men are still at it, and they need my advice on tree cutting.

Echelon 133 said...

how is the tree cutting going?