I agree with Roosevelt when he said that, "The only thing we have to fear is fear itself." Economic theories are not very predictive, especially on the macro scale. I wonder why that is? Because we're talking about a bunch of scared sheep who don't know where the wolves are so they run whenever they see their own shadow. We're not only talking about economic, mathematical forces with a simple algorithm here. We're talking about sociology and psychology, two very underdeveloped sciences, that may someday help us explain why markets fail. Will the markets fail? It will depend at least partly on what "the experts" say. Ron Paul saying the markets won't fail makes it just a little bit less likely that they will. I'm not saying that the mortgage crisis and predatory lending aren't real things, but the next most damaging force against the economy right now include the mass media chicken littles.
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