“The reputation of economics and economists, never high, has been a victim of the crash of 2008. An even more serious criticism is that the economic policy debate that followed seems only to replay the similar debate after 1929. The issue is budgetary austerity versus fiscal stimulus, and the positions of the protagonists are entirely predictable from their previous political allegiances.
The preposterous claim that deviations from market efficiency were not only irrelevant to the recent crisis but could never be relevant is the product of an environment in which deduction has driven out induction and ideology has taken over from observation.
The belief that models are not just useful tools but also are capable of yielding comprehensive and universal descriptions of the world has blinded its proponents to realities that have been staring them in the face. That blindness was an element in our present crisis, and conditions our still ineffectual responses.
Economists – in government agencies as well as universities – were obsessively playing Grand Theft Auto while the world around them was falling apart.” ~ John Kay, An Essay on the State of Economics, October 4, 2011
The transfer of wealth through cycles of bubble and bust continues unabated.
The oligarchy is audacious.
Stocks slid lower.
Gold bounced while silver remained flat.
VIX chopped sideways.
The Dollar was moving sideways.
Expiration tomorrow.
The spice must flow.
Compiled by Jesse for Jesse’s Café Américain ~ April 20, 2023
