Cover Review: Economics - "Markets don't make bubbles,people do." as the subheading. I have been stressing human behavior in economics re the financial crisis nowadays.
Harvard Professor Niall Ferguson published "The Ascent of Money" Penguin Press 441 pp. $29.95. Just published in 2008.
"Money is essential to human progress, it is trust inscribed on paper or metal." My comment: On the paper currency: This note is legal tender for all debts,public and private. Such notation should be known to all holders of paper currency for the true meaning relating to public and private debts as incurred. On the other side:"IN GOD WE TRUST" with faith,hope and charity. For metals: there is intrinsic fluctuating value of precious metals.
"Milton Friedman, the apostle of monetarism, who saw the supply of money as the key to the economy" I am reminded of Irving Fisher's Quantity Theory of Money or Equation of Exchange.(MV=PQ) We are living in the credit-based economy with plastic cards as debts for our credit. Credit problems should have been understood in the first place. Professor Ferguson explains with George Soros's theory of reflexivity. My comment: Investor's fixated judgment in the markets as mindset. Moreover,he cited Joseph Schumpeter,a conservative economist predicting Socialism as the wave for the future in 1940s at Harvard. Needless to say,his students were baffled about such prediction but he defended his position by saying that his prediction is not necessariy his preference as I sent my prior blogs.
Ferguson said on MSNBC last week that the United States should follow up the G-20 Economic Summit with a "G-2" meeting with just the Chinese. His reason for such recommendation is clearly obvious in light of the economic status of China. The first Nobel Laureate Jon Tingergen's "Convergence Theory"(1969) is the forerunner for the grand scale bailout of the private sector by the public sector in 2008.
Fear, greed and folly as the maxim of the Wall Street and there is no guarantee of future returns as a stern warning.
Well,let us wait for the empirical evidence in the days,weeks,months,and years to come to witness the glorified Monopoly Game with grand finale in the showplaces in the world.
Francis Shieh a.k.a. Xie Shihao, a graduate student from China in 1947 trying to learn political economy i.e. the REAL ECONOMICS of human behavior apropos of such inexact economic science in the age of uncertainty.
Saturday, November 29, 2009 at 10.55 a.m.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment