Economists Lost Sight of Economy by Focusing on Math
Nobel prize winning economist George Akerlof identified why economists have lost sight of the real economy: they are too concerned with the... Read More
Narratives and the Mainstream Media
Trust, but Verify. We all like a good story. It is in our nature. However, we all know that it is important... Read More
Theranos and the Role of Narratives
Trust, but Verify. This elegant expression lies at the heart of how our financial markets work. It also highlights the respective roles... Read More
Even with MMT, Economics Still Struggles with Financial Crises
Modern Monetary Theory (MMT) has moved front and center in the discussion over macroeconomic policy. With a boost from Alexandria Ocasio-Cortez and... Read More
Society’s Risk Appetite versus Banks’ Risk Appetite
Two unanswered questions since the beginning of the Great Financial Crisis are how much risk does society want banks to take and... Read More
Economist Susan Strange and the Opacity Protection Team
Have you ever wondered why shortly after the acute phase of the Great Financial Crisis ended transparency wasn’t restored to the opaque... Read More
Why Do We Keep on Taking Advice From Clueless Economists?
In 2008, the Queen of England asked the Economics profession why it hadn’t seen the Great Financial Crisis coming. Like the Queen... Read More
Economists Spot the Elephant in the Room … Are Global Banks Safer?
A decade after the acute phase of the Great Financial Crisis, Economists finally admit they cannot actually answer the question “are global... Read More
Economists Admit Financial Crises Originate in the Shadows
MIT’s Kristin Forbes and Harvard’s Kenneth Rogoff recently observed risk has migrated beyond the regulatory perimeter into the shadows of the global... Read More
A Reduction in Disclosure is a Sure Sign a Firm is Having Problems
One of the great truisms of investing is firms try to hide the fact they have encounter problems with their business. The... Read More
Auditors Forget Discovering Fraud is Their Reason for Existing
In theory, accounting firms focus on ensuring their clients’ financial statements are both accurate and assembled based on generally accepted accounting principles.... Read More
Bank Stress Tests Shouldn’t be Relied On
Periodically central bankers cannot help themselves and they actually tell the truth. The latest example is New Zealand’s Reserve Bank Governor Adrian... Read More
The Fed: Not Fit for Purpose
This interview with former Federal Reserve Vice Chair Donald Kohn is jaw dropping. It reveals just how unfit the Fed was and... Read More
Chicago Booth Confirms Economists Don’t Understand Transparency
It is incredibly ironic that the University of Chicago confirmed economists don’t understand either transparency or its role in the global financial... Read More
Does Economics as a Whole have Any Claim to Authority?
Recently, Fareed Zakaria set off the Economics profession by asking “Is This the End of Economics?”. Soon thereafter, Larry Summers sought to... Read More