Okay, were Krugman a lowly blogger instead of Nobel laureate would this even the playing field? In an attempt to address the writers concern, I offered this quick, albeit feeble, response;
Maybe if I were a Nobel laureate my words might carry some import with readers.
Either way the story of this economy unfolds, it seems there is a plethora (if I knew what that word meant I would tell you) of candidates for my All-Imbecile Team. Mish over at his fantastic blog Global Economic Trend Analysis submits yet another candidate, unwittingly?, this morning with his post Yet Another Keynsian Clown Steps Up To The Plate: Leo Kolivakis at Pension Pulse.
I am reprinting Mish's post in its entirety as an offering to individuals who, like the fella who wrote me, without a proper and concise refutation would lend credence to the argument (really now!) and actually buy into the hogwash. Below is Mish's, another blogger mind you, excellent refutation of Krugman and all the other Keynsian clowns argument.
The Keynesian clown hit parade just keeps on rolling. Leo Kolivakis at Pension Pulse is the latest to put on the clown hat for The Third Depression?
Some economists are worried about the push to slash deficits too early. In his op-ed piece in the NYT, Paul Krugman goes as far as calling for The Third Depression.The Cause of Depressions I am sick of Keynesian clowns who do not know the cart from the horse, who think debt is a free lunch, who think spending and debt are the ways to get out of debt problems and most of all never say how this debt is going to get paid back. What causes depressions is an unsustainable runup in credit and debt that precedes it, NOT a failure to go deeper in debt. Anyone who understands 5th grade math should be able to figure that out. Unfortunately, Nobel prize winning economists can't. "I listen to nonsense from some commentators claiming that if the US is not careful, it will suffer the same fate of Greece. Total rubbish." says Kolivakis. Three Examples of Total Rubbish
I also fear that policymakers are making a major mistake by moving so aggressively to cut deficits at a time when the global economy remains fragile. If you go back in history and look at all the major recessions, they were preceded by major policy mistakes. Either the Fed started raising rates too aggressively, or governments slashed spending too aggressively, or both.
- People who think crack addicts can smoke crack to cure their addiction
- Alcoholics who think they can drink their way out of alcoholism
- Debt junkies (and Keynesian clowns) who think one can spend one's way out of a spending problem
Thanks Mish for the refutation, much appreciated. As for bloggers versus nobel laureates, I would side with the sane individual every day of the week and twice on Sunday, no matter how many awards, designations, degrees and acolades that my hang on their wall.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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