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gold_medal
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Ex Dame Pansi wrote on Jan 4 th, 2013 at 2:37pm: Sir lastnail wrote on Jan 4 th, 2013 at 2:04pm: Ex Dame Pansi wrote on Jan 4 th, 2013 at 1:06pm: freediver wrote on Jan 4 th, 2013 at 10:27am: Ex Dame Pansi wrote on Jan 4 th, 2013 at 10:21am: freediver wrote on Jan 4 th, 2013 at 8:20am: Quote:There were very few economists that predicted the GFC before it hit, Keen was one of them. Nearly all of them did - hence the very high interest rates. That's what it means when the reserve bank keeps raising interest rates like that - they are trying to get people to stop borrowing. In fact the high interest rates usually trigger the downturn. Why Did So Many Economists Fail to Predict the Global Financial Crisis, and So Many Policymakers Mishandle It - While Some Saw It All Coming?Queen Elizabeth asked why the economist's didn't see this coming In a now famous letter in response to a question by Queen Elizabeth, economists in England explained why no one foresaw the timing, extent and severity of the credit crisis by laying responsibility on the “failure of the collective imagination of many bright people.” (Link to letter, PDF) This answer only begs the question as to why the imagination of so many economists was so limited. http://ineteconomics.org/financial-crisis-blindersThe answer to the Queen's question was "they didn't want to" Why didn't they?They were in denial, the same as many will be when we enter the next phase of the GFC, which will be a hell of a lot worse than what we've experienced already. Pansi, the fact that the Queen made the same mistake as you does not prove you are right. It just shows that the Queen does not understand macroeconomics either. Even if you don't understand economics, all you had to do was check the front page page of the Australian and you would have known it was on it's way. Maybe the Queen did see the GFC coming, I certainly did, as early as 2006. The thread went for ages on the Yahoo forum, there were a handful of us who were saying a crash is coming. We were called doomsayers by the righties, until the stockmarket crash of 2008, then......yes you guessed it, they blamed us for it ha! ha!....like we 'willed' it to happen. Anyway, remember when Bernanke and Obama had to round up the fat cats and call an emergency sitting of parliament, if they didn't get a resolution by the Monday there would have been a catastrophic financial meltdown? Surely you've watched some of the documentaries about this. They didn't know it was coming in 2008, our own government didn't even know, Keen, who has his eyes on the ball, and some others did. was longweekend58 aka gold_medal one of those that dismissed the prediction outright just as he does now with the housing market ? He certainly did, he said we were scare mongers, he's always worn rose coloured glasses. He won't admit a real estate drop of even 10%, let alone 40%, which has already happened at the Gold Coast, because he's hocked up to his eyeballs. He said he mortgaged his house for his water-boy business because house prices double every seven years. Shame they don't. As close to debt free is the way to go if you want to survive the coming tsunami. Pansi, you perdicted a 75% drop and were dead wrong. angry-nail predicted 40% and was also dead wrong. Keen has done the same thing and ALSO been wrong. all that happend was that the market had a correction of 7%. nothing more and nothing even remotely unusual. quoting the goad coast as a an example does yu now help because I can quote areas where prices have risen 30% in the same period. both would be uselss bits of selctively chosen data.
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