there are
clever magic tricks
and
unclever magic tricks

fama's wouldn't fool a goat

model the modeler first

good example

"...he (fama)was looking for a tool
to use to justify his own bias.."

precisely

too bad he lacks mankiw's
trick design skills

Posted by: paine | Link to comment | January 15, 2009 at 12:03 PM

paine says...
"We are confusing the real economy and the financial economy."

"we "
here includes not just fama but norman bates too
aka pugsley delong

shit its not just about relative price adjustments here

saved income invested in existing securities
merely adds to the spin rate
of hi fi laputa's paper propellers

not to mention
production dynamics (diffy q's enter here )
make a hash of any inventory comp stats
including this parable by
the serial clown norman tubby montebank

there are a zillion emaculate withdrawals
that can rob effective demand
from the full reproduction
of the real product markets

once "we" cut the gordian knot of
first degree keynesianism
and split y into its p's and q's
do the nomination identities
matter any way ???

smug mugger acts are repellent brad

Posted by: paine | Link to comment | January 15, 2009 at 12:20 PM

paine says...
"Friedman, to his credit, admitted that the onset of volatility in "V"

onset ????

christ it was always there
for those we eyes to see

the 80's
i guess made "the facts"
so big right wing magoo's like uncle milty
had to fess up ...inside the ivy cloister

" meant that his views on optimal monetary policy were wrong. "
and that of course
changed nothing in his snake oil patter
about "natural "hics
and
"natural" hocs

or in the overbaring catfaced confidence
of his merlinesque public mien

"That sort of mind is rare"

no its not its a fairly common pattern
among
my shit don't stink types

on the other side of the aisle
bill clinton is equally uncornerable
and undauntedly shameless

why the thought of reading uncle milty
makes me
long for ... delong

Posted by: paine | Link to comment | January 15, 2009 at 12:31 PM

paine says...
"If Mankiw's output of lies and slime varies in negative proportion to the tax rate, that makes raising the tax rate a moral imperative, prima facie"

what a fine feathered comment

Posted by: paine | Link to comment | January 15, 2009 at 12:33 PM

paine says...
"He lobs three insults: bisexual, dilettante, and academic"

poor brad was after a double layered effect here
very "with it " irony

unfortunately
pipe stove irony like this
wielded by rubber arms
often crashes to the floor

good slap stick though

Posted by: paine | Link to comment | January 15, 2009 at 12:42 PM

paine says...
"The whole point of private investment is to reduce the number of workers needed to produce the current mix of products, and allow the market to rapidly switch now redundant workers over to production of innovative new products."

again a confusion
of " wrong set of relative prices and quantities"
with inadequate aggregate effective demand

a conflation devoutly to be avoided

Posted by: paine | Link to comment | January 15, 2009 at 12:46 PM

paine says...
"Not enough attention is being paid to reducing the frictional costs."
lets get the number of vacancies
up closer to equality with those looking for jobs first

we're losing jobs these days not creating them
meanwhile on net 2 million folks try to enter
the "formal" job market each year