Brazil's currency took a nosedive this week. Investors, and the world in general, are concerned what the new Finance chief there is going to do. Since they seem to be unsure of what they guy is about, naturally they panic and cause a currency crisis.
This is why measured words are so important for our Fed chief. These hysterical ninnies in the financial industry will take any excuse for an emotional bender and play it to the hilt. Econo-Girl often finds that the people hiding behind numerical analysis are just a lot of twits that are extremely reactive.
Take the Law and Economics theory. It basically says that every legal decision should be decided by a cost/benefit analysis. Hmmm. Great way to look at the Bill of Rights. And of course, anything they decide they want somehow gets the best results and wins their 'objective analysis'.
All this puts Greenspan's warning about 'irrational exuberance' in a context of bravery. That took a lot of risk and guts to tell it like it is. Econo-Girl is going to miss old Alan Greenspan.
3 comments:
The day laws are decided on a fictional made up "cost/benefit analysis" is the day I move to Canada.
A cost/benefit analysis is based on things so generalized as to make the conclusions subject to a great degree of error.
Alan Greenspan was an objectivist. Objectivism is the philosophy presented by Ayn Rand.
-Your Ayn-Rand-Supporting Friend From Many Weeks Ago
Iggy, you are precisely right. It is a fool's analysis that justifies any amount of bullshit.
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