Paul Krugman in Sunday’s NYT has an article entitled “How Did Economists Get it so Wrong?” It’s fine as far as it goes, I think, but it misses so much, since it just focuses on financial economics. No mention of the growing wealth inequality in the US and its effects, such as forcing people to buy on credit, or using their homes a piggy banks (as long as the price was supposedly rising). No mention […]
In earlier posts I noted that even if “Wall Street” is temporarily saved and more carefully regulated, it will be difficult to prevent a meltdown similar to the current one from happening soon again. The reason is that it will be impossible to prevent new risky ways of playing tricks to obtain high returns by manipulating digital money streams. This is under way already. Banks have found apparently legal ways to cook their books to […]
To continue my study of the causes and possible cures of the meltdown, I want to discuss how there have seemed to be three different routes to making money. I do this in the context of my general prediction for over a decade, which has been that the attention economy will eventually replace the money-industrial economy, in all variants, including capitalism. This means that money will eventually be outmoded. For an early version of this […]
[Note: this is another entry in my attempt to make sense of the crash and see how it is tied to the Attention Economy. Some earlier entries are here, here, here, here and here.] I attended an informative, thought-provoking and amusing talk by Prof. Brad DeLong of UC Berkeley on Tuesday on the financial crisis “of 2007-2009” (he expects the crisis to have diminished by the end of this year). (The talk was part of […]