Orthodox economists stand aloof from a crisis of their own making. Time for a public inquiry where they can be interrogated
Like millions of others I am outraged by the Libor scandal, by the wrongdoings of the "submitters" and other traders at Barclays Bank under Bob Diamond, and their fellow travellers at the British Bankers' Association. That is why I and my colleagues at Prime have launched a government e-petition calling for a judicial public inquiry into the wrongdoings of banks, and for the inquiry to have powers to summon witnesses and question them under oath.
But this scandal is just a symptom of a much bigger dysfunctional banking system, one that is staunchly upheld by the British establishment – many of whom have their heads firmly below the parapet. And it is a direct result of the flawed, mainstream economic theories on which the global, so-called free market in money has been built.
Above all, it is mainstream economists who are directly responsible for the financial crisis and who have brought our global financial system to this pass.Read it at The Guardian (UK)
Be angry at bankers, be angrier at economists
by Ann Pettifor
(h/t Kevin Fathi)
Ann rips 'em a new one. Bravo. Encore.
Excellent. Has anyone noticed over the past few weeks that there has been a flurry of articles and blog posts by economists defending the successes and integrity of mainstream economics? On DeLong, Thoma, etc. Did the American Economics Association send out some kind of memo to their members to start boosting the profession?
ReplyDeleteThere is a video where she is talking too.
ReplyDeleteshe starts about 5:10
http://www.youtube.com/watch?feature=player_embedded&v=RnA17QBYBQg
How about being yet MORE angry at the aloof electorate that allows this iterative nonsense to build up?
ReplyDeleteA foolish population & it's options are soon parted.
IN ADDITION to punishing the incompetents from the last wreck, we need to be paying attention immediately to how we train the next batch.
Contingency management always goes back to the 3i's
Instigators (get the source)
Intercept (stop what's in progress)
Impact (deal with what's already gotten through)
Economists - like other people who have been privileged to study into adulthood and obtain advanced degrees, often at public expense - have a duty to educate. Citizens in a democracy have a duty to educate themselves as well. But for most people with limited time and resources, as a practical matter, self-education in economics means a good faith effort to seek out those people who have been credentialed as expert sources of economic knowledge, and then to read them or learn from them. If those credentialed experts don't know what they are talking about, the the system that produces them and credentials them has failed, and our society's broader educational system breaks down.
ReplyDelete"What artificial lending standard are YOU talking about?" - Mike Norman, 2006
ReplyDeleteAre these guys "losing" the money to strategic locations?
ReplyDeleteIt really does seem a gross injustice that no Economist suffered any consequence for their ineptitude.
ReplyDeleteIf a lawyer did it they would be disbarred.
If a doctor did it they would be sanctioned.
If they were a banker.. ok bad example.
Ryan, none of these people admits to being mistaken.
ReplyDeleteYou know, "Stuff happens."
Well I'm so angry I would bypass the legal niceties. Skewer they sorry asses on a giant pole and roast them over hot coals. Metaphorically or in actual reality... I'm not fussed.
ReplyDeleteFor variety I'd alternate bankers with economists and politicians.....seasoning with the odd journalist.
In the US frontier days, if a con man came to town and started cheating, they tarred and feathered him and rode him out of town on a rail.
ReplyDelete