Wow, just read this article. It’s not even wrong. "It’s been puzzling me since the start of the financial crisis: why can incontinent governments like, say, the UK’s, borrow almost unlimited amounts at interest rates far below inflation? Stephen King at HSBC has been thinking about this, and has come up with a suitably apocalyptic (he has a reputation to defend, after all) explanation for the silly prices of government debt."
"I think I tend to agree more with Irving Fisher, arguably the greatest economist of the last century, who, writing in the late ’30s, after observing the Great Depression and the actions of the Federal Reserve, noted that the best and only way to deal with a credit bubble was to prevent it from happening. Once they develop, there is no easy, painless way back. " But this is damn stupid:“Good banking is produced not by good laws but by good bankers.”
"I’m here because I’m a Malaysian and I love my country," said information technology manager Burrd Lim. "There’s no election that’s perfect, but I want one that’s fair enough." When the IT managers are saying stuff like this, change will happen.
The neoconservative and neoliberal worldviews described above can be seen as reactions against the New Deal order. The government as manager of regulatory and service agencies in the New Deal, judged by its ability to provide mass prosperity, becomes an agent of order intent on policing activities and people beyond the realm of market logic. And, crucially, government policy is seen to be legitimate only when it follows the logic of framing problems as analogous to crime and crime control.
"While DSGE models are useful research tools for developing analytical insights, the highly simplified assumptions needed to obtain tractable general equilibrium solutions often undermine their usefulness. As we have seen, the data violate key assumptions made in these models, and the match to institutional realities, at both micro and macro levels, is often very poor." In a bar conversation, I’d just say "DSGE is mostly Bullshit."