Streams: Comment of the Day Feed

Comment of the Day: Graydon: Insecurity Management: "I think you're missing the central thing about Drake's writing. It is not so much that, yeah, these are not the best circumstances and our feels are in abeyance; that happens, that's depicted. But among that depiction you get what I think of as the essential Drake thing, which is a vehicle crew. They may not like each other much; they may not, in some senses of the word, trust one another. But they are entirely predictable to one another, and reliable. And it's that obligation of reliability that lets people get their head out of hell, whether as imperfectly as Danny Pritchard does it or as entirely as the protagonist of Redliners does. (You can see much the same flavour of reliable between Gunnar and Brennu-Njáll.)...

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Comment of the Day: Cervantes: There's No Proccess...: "Individual-1 told Mnuchin to do something to talk up the stock market and Mnuchin thinks this will have that effect. So he's an idiot. That's basically all there is to it. Possibly Individual 1 suggested these specific steps, possibly they're Mnuchin's idea. Doesn't matter since they're both idiots anyway....


#commentoftheday

Comment of the Day: Maynard Handley: Ancient Technologies of Organization and Mental Domination, Clerks, Linear B, and the Potnia of Athens: "I think this sort of theorizing about ancient religion is too much based on current monotheic religion which has a very strong us vs them (gods are VERY different from humans) post ~100CE or so vibe. The right way (IMHO) to think of ancient religion (and much of lived medieval European religion vis a vis saints) is that gods played the same role as celebrities in our time. They bigger, better, more outrageous than us. Some of us are lucky enough to be their hairdressers and pool cleaners, a few more maybe saw them one time on the street walking down Rodeo Drive, ad the rest of us have to make do with photos and whatever gossip is being reported right now...

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Comment of the Day: Ebenezer Scrooge: The Great American Tax Heist Turns One: No Longer Live at Project Syndicate: "If I were in an unusually forgiving mood, I would say that many on the list are financial economists, not macroeconomists. Non-Dunning-Krueger people are stupidest when opining on a field near, but not precisely with, their own expertise. (xkcd's "Physicists" cartoon is particularly on point.) But I'm not in an unusually forgiving mood. Many on the list are macroeconomists, and financial economics is just a little bit too close to '80's-style lawn economics to be taken seriously...


#shouldread #commentofhteday

Comment of the Day: Charles Steindel: Weekend Reading: Paul Krugman (2011): Mr Keynes and the Moderns: "Yes. When I was in grad school in the '70s it was tacitly taught that the 'General' in the title was essentially Keynes' marketing—what we think of as 'Keynesian' economics was really a special, not general, case. The standard fresh-water critique that we can likely get rid of cyclical problems, most notably a sluggish return to full employment, by structural reforms (essentially, removing rigidities in price and wage setting) was seen as having at least some merit. 2008 taught me otherwise...

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Clowns (ICP)

Comment of the Day (January 19, 2009): Robert Waldmann: Fama's Fallacy V: Are There Ever Any Wrong Answers in Economics?: "'economic science' is a phrase like 'military intelligence.' Out of respect for my fellow economists and the DIA I won't name that class of phrases. However, 'economic theory' is a sub branch of mathematics. Within economic theory there are definitely false statements—such as those made by Mankiw and Fama. I'm not surprised that Fama is making a fool of himself. He has made similarly nonsensical arguments in his own field of expertise. He has been a tenured head of a school of thought for a long time, and has probably forgotten what it was like to make arguments which weren't accorded respect just because he made them...

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Comment of the Day: Charles Steindel: It Is Such a Bad Idea for a Central Bank to Invert the Yield Curve: "To my mind a somewhat comparable puzzle is the damage done by financial crises. It is true that it is extremely difficult for monetary policy to reverse a recession spurred by a financial crisis all on its own: crises tend to drive safe short rates down to zero all on their own, leaving little room for the Central Bank to do its thing. Thus we have had those awkward "unconventional" tools. We know--or should know!-- that fiscal policy can readily fill the gap; that's typically not adequately done, apparently because the surge in deficits spurred by the recession raises debt fears that can't seem to be beaten back...

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Per Kurowski: Self-Fulfilling Financial Crises: "The risk weighted capital requirements for banks guarantee: 1. Especially large exposures to what’s perceived as especially safe, against especially little capital, which dooms or bank system to especially severe crises. 2. Especially low exposures to what is perceived as risky, like loans to entrepreneurs and SMEs, which dooms our economy to weakness and not being able to reach its potential. And that has yet not even been discussed, much less learned http://perkurowski.blogspot.com/2016/04/here-are-17-reasons-for-why-i-believe.html...

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Monday DeLong Smackdown: Alan Kirman on Self-Fulfilling Financial Crises

Smackdown

Alan Kirman is wise. Listen to him: Monday DeLong Smackdown: Alan Kirman: Self-Fulfilling Financial Crises: For the first time I feel moved to disagree with your assessment here Brad. The behavioral approach proposed by the authors suffers from the same disease as many that have been proposed earlier. It is the idea that one particular "bias" will help to understand and explain the causes and consequences of economic crises. This seems to me to be at odds with what really goes on. Already in 1900 Poincaré criticised Bachelier because he ignored the fact that people tend to behave like sheep. People do not simply receive their information independently and then act on it and in so doing reveal that information. Herd behaviour would suggest that people's beliefs change and are strongly influenced by those with whom they interact...

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