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alstry (36.00)

Economics....A Disgraced Profession

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May 20, 2010 – Comments (1)

Remember last year when Alstry was telling you one day the world would abandon Economics and adopt Alstrynomics......

It appears one of the most well known Economists in the world is finally waking up:

The following is the text of  James Galbraith‘s written statement to members of the Senate Judiciary Committee delivered a few days ago.

Chairman Specter, Ranking Member Graham, Members of the Subcommittee, as a former member of the congressional staff it is a pleasure to submit this statement for your record.

I write to you from a disgraced profession. Economic theory, as widely taught since the 1980s, failed miserably to understand the forces behind the financial crisis. Concepts including “rational expectations,” “market discipline,” and the “efficient markets hypothesis” led economists to argue that speculation would stabilize prices, that sellers would act to protect their reputations, that caveat emptor could be relied on, and that widespread fraud therefore could not occur. Not all economists believed this – but most did. 

Thus the study of financial fraud received little attention. Practically no research institutes exist; collaboration between economists and criminologists is rare; in the leading departments there are few specialists and very few students. Economists have soft- pedaled the role of fraud in every crisis they examined, including the Savings & Loan debacle, the Russian transition, the Asian meltdown and the dot.com bubble. They continue to do so now. At a conference sponsored by the Levy Economics Institute in New York on April 17, the closest a former Under Secretary of the Treasury, Peter Fisher, got to this question was to use the word “naughtiness.” This was on the day that the SEC charged Goldman Sachs with fraud.

THE SHEEP ARE FINALLY WAKING UP....NOW THE QUESTION IS HOW WILL THEY REACT WHEN THEY LEARN THEY HAVE BEEN FLEECED?

1 Comments – Post Your Own

#1) On May 20, 2010 at 5:20 AM, alstry (36.00) wrote:

How economists failed to see their failed policies would lead to world unrest still escapes the average thinker....

Athens, Bangkok, Bucharest....it is just the beginning of the Digital Age revoluation.

Thousands protest over Romania austerity measures.

Tens of thousands of public sector workers have gathered in the Romanian capital Bucharest to protest against plans to cut wages and pensions. The gathering was one of the biggest on the streets of Bucharest was one of the biggest since the Romanian Revolution.

WELCOME MY FELLOW SHEEP TO THE DIGITAL AGE...IT WILL BE EXCITING.

French President Nicolas Sarkozy’s popularity fell to its lowest since his 2007 election last month. Worse may lie ahead as he cuts spending and raises taxes in the wake of Europe’s financial crisis.

Sarkozy risks increasing voters’ ire two years ahead of presidential elections as he strives to meet promised deficit- reduction targets and pacify investors. The choices include the politically sensitive areas of lifting the top tax rate and tightening pension requirements.

“Austerity is economically necessary but politically unacceptable,” said Laurent Dubois, a professor at Paris’s Institute of Political Studies. “But he has no choice, the debts are too heavy.”

YET THE INSOLVENT BANKERS GET TRILLIONS IN FREE MONEY AND THE PRIVATE CITIZENS GET KICKED OUT OF THEIR HOMES?

ONE WAY OR ANOTHER THE SHEEP WILL WAKE UP......

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