This is probably his (I'm making this number up but you get my drift) 1,187th post about the simple (and yet so hard to understand for so many people) fact that what works for a corporation (or a small business) does not work for a country as a whole (especially for one as big and interconnected as the U.S.):
About that bad advice: Think of the hugely wealthy money managers
who warned Ben Bernanke that the Fed’s efforts to boost the economy
risked “currency debasement”; think of the many corporate chieftains who
solemnly declared that budget deficits were the biggest threat facing
America, and that fixing the debt would cause growth to soar. In Japan,
business leaders played an important role in the fiscal mistakes that have
undermined recent policy success, calling for a tax hike that caused growth
to stall earlier this year, and a second tax hike next year that would be an
even worse error.
And on the other side, the past few years have seen repeated vindicationI know I haven't been very loquacious these past few months (years) as far as my blog goes - my excuses ranging from "too busy trading" to "what's the point?" - but...just saying: come on people, this is not rocket science. Not only that, but aren't these past 6 years proof enough? Isn't it time for some people to admit they were, if not totally wrong (that would be too much to ask), then at least, let's say, slightly mistaken?
for policy makers who have never met a payroll, but do know a lot about
economic theory and history. The Federal Reserve and the Bank of England
have navigated their way through a once-in-three-generations economic
crisis under the leadership of former college professors — Ben Bernanke,
Janet Yellen and Mervyn King — who, among other things, had the courage
to defy all those tycoons demanding that they stop printing money. The
European Central Bank brought the euro back from the brink of collapse
under the leadership of Mario Draghi, who spent the bulk of his career in
academia and public service.