Tuesday 21 July 2009

Central bankers: Out there without a clue [updated]

This video of Federal Reserve chairman Ben  Bernanke puts into perspective the recent predictions of of economic recovery made by our own central banker, Alan Bollard.  Frankly my dears, for all the reverence they’re given, these guys don’t have a clue. 

Bob Murphy calls it “The Best Five-Minute-And-Seven-Second Argument Against Giving [Central Bankers] More Power.”  Enjoy.

UPDATE:  To be fair, it’s not just central bankers whose crystal balls need work.  There’s a Prime Minister not a million miles from here who’s similarly bereft.

2 comments:

Elijah Lineberry said...

One of the concerning things at the moment is "Law Of Averages"-ism.

This is where various self appointed guru chappies, Central Bankers, Heads of State et al simply say "after two awful years things are due for an upturn"

Throw fundamentals out the window, along with logic, reasoning, the number of 'For Sale' and 'For Lease' signs around town...and just fall back on the law of averages.

(the mind boggles)

Anonymous said...

Breaking news, Central Bankers command the tide not to come in...