I don't see that appraising the level of stock prices in September has anything to do with ideology. My bet is that they will rise beyond the September levels, though probably not for the better part of the year. Only with the benefit of hindsight is it clear that it would have been worth selling in Sept, compared to today.
On Thu, Mar 5, 2009 at 9:30 AM, Jim Devine <[email protected]> wrote: > me: >> an inside scoop >> * >> I've heard that the economics department at a local university (which >> shall remain nameless) got together at the start of September and >> discussed the stock market. By and large, opinion followed the >> standard ideological divide among economists. The free market types >> (followers of Edward Prescott, etc.) said it was time to buy, since >> there was no place to go but up. The more "new Keynesian" types said >> it was time to sell. If these people put their money where their >> mouths were, the free market types got their comeuppance. > > Charles Brown wrote: >> Any inside scoop on how free market >> types rationalize the stupendously non-free/free >> market Wall Street financial capitalist >> sector ? > > My informant tells me that they were all quite confused (including the > so-called "new Keynesians"). > > By the way, this fellow presented a paper to my department which > reflected the worst tendencies of economics: it paid major costs (in > terms of distorting reality via "simplifying" assumptions) in return > for almost no interesting benefits (in terms of empirical insights or > predictions). He seemed quite a smart guy who was wasting his > intelligence on this stuff. > -- > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own > way and let people talk.) -- Karl, paraphrasing Dante. > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
