Editor’s choice comment on David Brook’s NYT column today
This link will take you to the comment selected as an Editor’s choice today in response to David Brook’s column.
I’m obviously indebted to the Crash Course for the economic data but I found it interesting that the NYT chose to select it. Interestingly enough Jamie Dimon (CEO and Chairman of JP Morgan Chase) was also asked about $37 trillion in unfunded liabilities in a recent forum (he denied that it would have any impact on the recovery) so people are beginnig to talk about this stuff in mainstream media.
Nicely done, Bill! I really liked the physics analogy and your discussion of how the models we use to explain phenomenon are sometimes forced to change to fit new data. Similarly, our economic crisis is causing many people to reasses their conceptual model of the economy. That incorrect model, and the misunderstanding it perpetuates of the way our economic system works, is exactly why so many people cannot grasp the current situation! They are using a wrong model, that has held up "well enough" to perpetuate for years, to try to understand new data that just doesn’t fit!
Hopefully Chris’s Crash Course, and the insightful contributions of other open-minded analysts, will help more and more people understand how our economic (and other) systems really work.
From the old model, what’s going on DOES seem "crazy"! But the fact that folks like Chris and Laurence Kotlikoff and Peter Schiff and a number of others were able to see this coming from miles away reflects the fact that their understanding is based on a better model.