Interesting article on economics

[kallend 2,231]

And why mainstream economists were so wrong about the current recession.

www.nytimes.com/2009/09/06/magazine/06Economic-t.html?pagewanted=1&_r=1

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The only sure way to survive a canopy collision is not to have one.

[airdvr 210]

You have to start posting shorter articles. My ADHD doesn't allow me to read that much online.

Please don't dent the planet.

Destinations by Roxanne

[SpeedRacer 1]

this is much shorter.

Speed Racer
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[kallend 2,231]

Quote

You have to start posting shorter articles. My ADHD doesn't allow me to read that much online.

Here it is for the ADHD crowd:

www.youtube.com/watch?gl=GB&hl=en-GB&v=mzJmTCYmo9g

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The only sure way to survive a canopy collision is not to have one.

[riddler 0]

Quote

My ADHD doesn't allow me to read that much online.

What I got out of it:

1) Neoclassical, supply-side macroeconomics (as embraced by fresh-water economists) doesn't work for market collapse. In other words, a completely free market is a really bad thing, bubbles are real.

2) Keynesian, demand-side macro (relegated to salt-water economists) does a better job of describing recessions and depressions, but it's far from perfect.

3) No macro models incorporate core individual financial elements, such as limited capital by individuals and corporations, or the fact that people will pull out of the market entirely to keep their houses.

Author's conclusions summed up here:

Quote

So here’s what I think economists have to do. First, they have to face up to the inconvenient reality that financial markets fall far short of perfection, that they are subject to extraordinary delusions and the madness of crowds. Second, they have to admit — and this will be very hard for the people who giggled and whispered over Keynes — that Keynesian economics remains the best framework we have for making sense of recessions and depressions. Third, they’ll have to do their best to incorporate the realities of finance into macroeconomics.

Trapped on the surface of a sphere. XKCD