Monday, April 6, 2009

Now vs then

Voltron says:

There's only been one great depression, so economists comparing today to the great depression is like a doctor who has only ever seen one really sick person. When presented with another sick person, the doctor is either going to think that this person has the same illness, which is probably incorrect, or the doctor is going to admit he has no idea what is wrong with the patient, which is unlikely.

My other favorite analogy is that studying economics to make money is like studying gynecology to get p****. It doesn't work that way!

Maybe after 30,000 years when we've had 1,000 depressions, I'll trust economists.

I think comparisons to the Japanese "lost decade" are more apt, but for what it's worth, the link below contains so charts of how we are tracking compared to the great depression (worse) and how governments have responded (more aggressively)

No comments: