Today Tonight’s James Thomas put together “Changing Times”, an excellent program on what a Depression is like, and the danger that we may be facing one today.
Academics — and their mad theories — are to blame for the financial crisis. They too deserve to be hauled into the dock”
So begins Anatole Kaletsky’s essay in The Times for February 5 2009. He is spot on. Economic theory played a direct role in this crisis, by legitimising the deregulation of finance and encouraging the profligate lending of financial institutions. There is much more that is wrong with the theory that dominates academic economics–known as “neoclassical economics”–enough to fill several books. My Debunking Economics : the naked emperor of the social sciences was one such book; in it I tried to explain all the technical flaws in economic theory to a non-mathematical audience.
The Today Tonight segment has been delayed till this evening (Wednesday February 4th)–which is a pity in a way because I will also be speaking at a public forum tonight at Circular Quay organised by the Property Knowledge Forum: An excerpt from the promotional flyer:
ARE WE HEADING FOR A DEPRESSION?
Channel Seven’s Today Tonight is doing a piece on whether we might face a Depression, and if so what it might be like. It should go to air tomorrow–Tuesday February 3rd.
They have interviewed me for analysis, and Eric Aarons–who lived through the Great Depression and at 90 is still a dynamic sculptor and author.
I’ve just been interviewed for an SBS News piece on China (for non-Australian readers, SBS is Australia’s multicultural television station, and its news has a strong international focus).
Ordinarily I’d simply post a link to a media report in either my Gems or Brickbats page. But this quote from Microsoft CEO Steve Ballmer shows that he really understands what is going on now, in a way that no other person in authority seems to have done as yet. The full report can be found at:
I have just moved the blog to a new ISP after my previous provider IXWebhosting proved to have intractable problems with malware.
The new hosting is being provided pro bono by Cyanide Web Hosting, which I greatly appreciate.
Note: This post has been modified ni the light of comments that the initial version quoted Bernanke out of context.