Friday, 7 August 2009

Such complacency

Bernanke consistently got it wrong before the US housing bubble burst. Now, he is pumping up the money supply to revive the economy. Since his judgement has been so poor in the past, does anyone have any confidence that he is getting it right now?


OldSouth said...

At some point, the 'Paulson Effect' will kick in. Every time Henry Paulson appeared on TV in the final months of his tenure, the market tanked.

Everyone assumed that he was ignorant or lying, and his assurances that everything was under control had the opposite effect upon the listeners.

And, given CNBC's track record, why is anyone giving this organization credence?

Fred said...

Hi Alice,
I found this cool TED talk from a Behavioural economist and he makes some interesting observations on banking.

From the website :-
Behavioural economist Dan Ariely studies the bugs in our moral code: the hidden reasons we think it's OK to cheat or steal (sometimes). Clever studies help make his point that we're predictably irrational -- and can be influenced in ways we can't grasp.

Dan Ariely on our buggy moral code