Well, darn it!, I feel vindicated at long last... I've been harping on the need to focus on the Real Economy (tm) for so long in this blog, I was beginning to feel like a "nut".
Lo and behold, Reuters just ran an article on the theme: Crisis forces "dismal science to get real". Out go "rational expectations", "supply and demand", econometric formulas, etc. and in come... Argentinian ants, of all things (read the article).
As Real As It Gets, Apparently..
Here's another "shock" from the Reuters report: testosterone levels in human "players" are more important than risk-return analysis (duh.. anyone who's been around a dealing room/trading floor could have told 'em, several dozen years ago, even).
Mmm... better lay off the bug spray. It may prove dangerous to your (financial) health.
The problem with "all government is bad" ideology:
ReplyDeletesaid Gatti. "What the traditional theories do not consider is that the financial market must be regulated. A too-liberalized market creates monsters."
And do we have monsters.
Oh do we ever have monsters...
ReplyDeleteFinancial markets went to truly uncharted territories a few years back, but without paying any attention to the warning Hic Sunt Dracones (here be monsters) placed on the map... :)
China is certainly not the only country encouraging investment in its real economy, other countries are doing the same.
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