Monty Pelerin's World

Economics, Finance and Politics Through The Prism of Classical Liberalism

Wisdom: Our Policy-Makers

A few days ago in a post entitled Wisdom: To Whom You Listen is Important comments and forecasts from the 1930s were presented. The examples were obviously handpicked and were ridiculously wrong. It was stated:

Years from now a similar collection of quotes from our time will be collected. The names will be different, but the quotes will be just as embarrassing. The likes of Greenspan, Bush, Bernanke, Paulson, Obama, Cramer, Krugman, etc. etc. will appear as fools for the future. Most have already qualified, but are still enhancing their “resumes.” For future historians, this era may be more “target-rich” in foolish statements than was the Great Depression.

The purpose of that post was twofold: (1) the so-called best and brightest of that time had no realization of the severity of the situation; (2) it is likely that we are in a similar situation today. As evidence that the current situation is not understood and the comment/projections are just as ridiculous, the following short video is offered.

[youtube]http://www.youtube.com/watch?v=HQ79Pt2GNJo[/youtube]

Regardless of whether you consider Bernanke brilliant or an idiot, it is truly scary that his judgment (with no oversight by any elected official) guides most economic policy. Despite the fortune spent on research and data collection at the Federal Reserve and by the Federal Government, have we no better understanding of what is happening?