Who Deserves Blame for the Economy? | Newsweek Voices - Daniel Gross

Bankers vs. Economists

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Bankers have clearly suffered more financial damage—they had a lot more to lose. But when it comes to reputation, I think it's a draw. One similarity between the two professions' reaction to the meltdown is that it doesn't seem to have occasioned much self-examination. The best Greenspan could muster was that he had "found a flaw" in his theories.

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Absolutely right... the tendency of economists to marginalize and even demonize opposing schools of thought led to an environment in which there was only one 'officially sanctioned' brand of economics. Needless to say, this is the brand of economics that didn't see the crisis coming, believes that we can borrow and spend our way out of this mess and is confusing individual banks with 'financial infrastructure.' We see this in the identical bailout policies undertaken by Bush and Obama, and we see this in the false premise of articles like the one above...

The only intelligent debate on our nation's future today is taking place on a handful of economics blogs (ritholtz, shedlock, denninger...). Mass media is marginalized because it's buying the same party line that Obama is tragically falling for... 'There is only one economic point of view'

arggh!! this article makes me mad. in fact there were many economists who predicted a downturn and pointed to the financial sector as BLOATED. krugman, roubini, taleb, and a very obscure one who was shouting alarms about the FIRE (finance, insurance, real estate) sector gorged/bloating/bubble years ago-- MICHAEL HUDSON. he was working on an unpublished manuscript at the time of the crash!!! could anyone have been more accurate??? AIG== INSURANCE

these economists are just not part of the cool crowd, the key coterie. its like jocks vs nerds except even in economics. and you see this still play out with the bailout. the nerds, who are right about a better approach, are shut out by the jocks. summers says he doesnt know of any economists who have a different idea of how to do the bailout via seminationalization. what an idiot. and the idiot press doesnt call him on it, or any of the other "in" economists.

yeah, add to the list ME.. but of course, I dont count as an economist because I dont have a Phd & I didnt go to an ivy league school.

but, I gave a strong and accurate warning-- SEVEN years ago.

does anyone listen? no, of course not.
bitter?? nah. humans are stupid.. why should I expect anything different?? in fact if this recession doesnt last much longer, which is possible, a possible once-in-a-century moment for true reform will have passed, as the cow-like public and talking heads are going to go on to the next crisis do jour of our own making.

now daniel, I havent read your book yet, but your assertion that the economists didnt see this coming is just flat out blindness. do your homework. do your research. the truth is that the bozos and crooks who have the iron fisted grip on power in this country are the ones that didnt see it coming, and still dont realize that they have been "outed" long ago, even before the current recession.

more info

"fractional reserve banking as economic parasitism"
http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.

recent supporting material:

Ron Paul???s Bill To Audit The Federal Reserve Now Has 55 Co-Sponsors!
http://www.ronpaul.com/2009-04-01/ron-pauls-bill-to-audit-the-federal-reserve-now-has-50-co-sponsors/

How Banks and the Federal Reserve are Bankrupting the Planet by Ellen Brown
http://www.webofdebt.com/

The Shock Doctrine: Naomi Klein on the Rise of Disaster Capitalism
http://www.democracynow.org/article.pl?sid=07/09/17/1411235

Confessions of an Economic Hit Man: How the U.S. Uses Globalization to Cheat Poor Countries Out of Trillions</a>
http://www.democracynow.org/article.pl?sid=04/11/09/1526251

John Perkins on "The Secret History of the American Empire: Economic Hit Men, Jackals, and the Truth about Global Corruption"
http://www.democracynow.org/artic

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Posted By: tired and old @ 04/17/2009 9:59:15 AM

CEO GREED and CONGRESSIONAL/ WHITEHOUSE STUPIDITY CAUSED OUR PROBLEMS.

STEVE " THE RAT " RATTNER WILL END UP IN PRISON.

THE BAILOUTS WILL CONTINUE ; UNTIL, VIOLENT PROTESTS BECOME REALITY.

BARNEY " *** " FRANK WILL GET AIDS.
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Posted By: ftpants @ 04/16/2009 3:05:29 PM

Absolutely right... the tendency of economists to marginalize and even demonize opposing schools of thought led to an environment in which there was only one 'officially sanctioned' brand of economics. Needless to say, this is the brand of economics that didn't see the crisis coming, believes that we can borrow and spend our way out of this mess and is confusing individual banks with 'financial infrastructure.' We see this in the identical bailout policies undertaken by Bush and Obama, and we see this in the false premise of articles like the one above...

The only intelligent debate on our nation's future today is taking place on a handful of economics blogs (ritholtz, shedlock, denninger...). Mass media is marginalized because it's buying the same party line that Obama is tragically falling for... 'There is only one economic point of view'
- Reply
- Report Abuse
Posted By: vznuri @ 04/15/2009 8:40:24 PM

arggh!! this article makes me mad. in fact there were many economists who predicted a downturn and pointed to the financial sector as BLOATED. krugman, roubini, taleb, and a very obscure one who was shouting alarms about the FIRE (finance, insurance, real estate) sector gorged/bloating/bubble years ago-- MICHAEL HUDSON. he was working on an unpublished manuscript at the time of the crash!!! could anyone have been more accurate??? AIG== INSURANCE

these economists are just not part of the cool crowd, the key coterie. its like jocks vs nerds except even in economics. and you see this still play out with the bailout. the nerds, who are right about a better approach, are shut out by the jocks. summers says he doesnt know of any economists who have a different idea of how to do the bailout via seminationalization. what an idiot. and the idiot press doesnt call him on it, or any of the other "in" economists.

yeah, add to the list ME.. but of course, I dont count as an economist because I dont have a Phd & I didnt go to an ivy league school.

but, I gave a strong and accurate warning-- SEVEN years ago.

does anyone listen? no, of course not.
bitter?? nah. humans are stupid.. why should I expect anything different?? in fact if this recession doesnt last much longer, which is possible, a possible once-in-a-century moment for true reform will have passed, as the cow-like public and talking heads are going to go on to the next crisis do jour of our own making.

now daniel, I havent read your book yet, but your assertion that the economists didnt see this coming is just flat out blindness. do your homework. do your research. the truth is that the bozos and crooks who have the iron fisted grip on power in this country are the ones that didnt see it coming, and still dont realize that they have been "outed" long ago, even before the current recession.

more info

"fractional reserve banking as economic parasitism"
http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.

recent supporting material:

Ron Paul???s Bill To Audit The Federal Reserve Now Has 55 Co-Sponsors!
http://www.ronpaul.com/2009-04-01/ron-pauls-bill-to-audit-the-federal-reserve-now-has-50-co-sponsors/

How Banks and the Federal Reserve are Bankrupting the Planet by Ellen Brown
http://www.webofdebt.com/

The Shock Doctrine: Naomi Klein on the Rise of Disaster Capitalism
http://www.democracynow.org/article.pl?sid=07/09/17/1411235

Confessions of an Economic Hit Man: How the U.S. Uses Globalization to Cheat Poor Countries Out of Trillions</a>
http://www.democracynow.org/article.pl?sid=04/11/09/1526251

John Perkins on "The Secret History of the American Empire: Economic Hit Men, Jackals, and the Truth about Global Corruption"
http://www.democracynow.org/artic