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George Soros Turns (Semi) Austrian: "Why I Agree With (Some Of) Hayek"

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Why I agree with (some of) Hayek, by George Soros

From Politico

Friedrich Hayek is generally regarded as the apostle of a brand of economics which
holds that the market will assure the optimal allocation of resources —
as long as the government doesn’t interfere. It is a formalized and
mathematical theory, whose two main pillars are the efficient market
hypothesis and the theory of rational expectations.

This is usually called the Chicago School, and it dominates the teaching
of economics in the United States. I call it market fundamentalism.

I have an alternative interpretation
— diametrically opposed to the efficient market hypothesis and rational
expectations. It is built on the twin pillars of fallibility and
reflexivity.

I firmly believe these principles are in accordance with Hayek’s ideas.

But we can’t both be right. If I am right, market fundamentalism is
wrong. That means I must be able to show some inconsistency in Hayek’s
ideas, which is what I propose to do.

Let’s start with Hayek’s influence on the twin pillars of my
interpretation. I was a student at the London School of Economics in the
late 1940s and read the great methodological controversy between Karl
Popper and Hayek in Economica, the school’s periodical.

I considered myself a disciple of Popper. But here I was on Hayek’s
side. He inveighed against what he called “scientism” — meaning the
slavish imitation of Newtonian physics. Popper took the opposite
position. He argued in favor of what he called the doctrine of the unity
of science — that the same methods and criteria apply to all scientific
disciplines.

I was drawn to this controversy by my interest in Popper. I had read his
book, “Open Society and its Enemies,” in which he argued that the
inconvertible truth is beyond the reach of the human intellect, and
ideologies that claim to hold this truth are bound to be false.
Therefore, he argued, they can be imposed on society only by repressive
methods.

This helped me see the similarity between the Nazi and communist
regimes. Having lived through both in Hungary, it made a great
impression.

This led me to Popper’s theory of scientific method. Popper claimed that
scientific theories can never be verified — they can only be falsified.
So their validity is provisional — they must forever remain open to
falsification by testing. This avoids all the problems of needing to
prove scientific theories beyond any doubt and establishes the
importance of testing. Only theories that can be falsified qualify as
scientific.

While I was admiring the elegance of Popper’s theory, I was also
studying elementary economics. I was struck by a contradiction between
the theory of perfect competition, which postulated perfect knowledge,
with Popper’s theory, which asserted that perfect knowledge was
unattainable. The contradiction could be resolved by recognizing that
economic theory cannot meet the standards of Newtonian physics.

That is why I sided with Hayek — who warned against the slavish
imitation of natural science and took issue with Popper — who asserted
the doctrine of unity of method.

Hayek argued that economic agents base their decisions on their
interpretation of reality, not on reality — and the two are never the
same.

That is what I call fallibility. Hayek also recognized that decisions
based on an imperfect understanding of reality are bound to have
unintended consequences. But Hayek and I drew diametrically opposed
inferences from this insight.

Hayek used it to extol the virtues of the invisible hand of the
marketplace, which was the unintended consequence of economic agents
pursuing their self-interest. I used it to demonstrate the inherent
instability of financial markets.

 

In my theory of reflexivity I assert that
the thinking of economic agents serves two functions. On the one hand,
they try to understand reality; that is the cognitive function. On the
other, they try to make an impact on the situation. That is the
participating, or manipulative, function.

The two functions connect reality and the participants’ perception of
reality in opposite directions. As long as the two functions work
independently of each other they produce determinate results. When they
operate simultaneously they interfere with each other. That is the case
not only in the financial markets but also in many other social
situations.

I call the interference reflexivity. Reflexivity introduces an element
of unquantifiable uncertainty into both the participants’ understanding
and the actual course of events.

This two-way connection works as a feedback loop. The feedback is either
positive or negative. Positive feedback reinforces both the prevailing
trend and the prevailing bias — and leads to a mispricing of financial
assets. Negative feedback corrects the bias. At one extreme lies
equilibrium, at the other are the financial “bubbles.” These occur when
the mispricing goes too far and becomes unsustainable — boom is then
followed by bust.

In the real world, positive and negative feedback are intermingled and
the two extremes are rarely, if ever, reached. Thus the equilibrium
postulated by the efficient market hypothesis turns out to be an extreme
— with little relevance to reality.

Frank Knight was the first to identify the unquantifiable uncertainty
inherent in financial markets. John Maynard Keynes and his followers
elaborated his insight.

Classical economists, by contrast, sought to eliminate the uncertainty
connected with reflexivity from their subject matter. Hayek was one of
them.

The methodological debate in Economica took place in the context of the
larger political controversy over the role of the state in the economy.
Hayek was on one side, Keynes and socialist planners on the other.

But Hayek subordinated his methodological arguments to his political
bias. That is the source of his inconsistency. In the Economica, he
attacked scientism. But after World War II, when the communist threat
became more acute, he overcame his methodological qualms and became the
apostle of market fundamentalism — with only a mild rebuke for the
excessive use of quantitative methods in his Nobel Prize acceptance
speech.

Because he was fighting communism, a scientific theory that proved that
market participants pursuing their self-interest assure the optimum
allocation of resources was too convenient for him to reject. But it was
also too good to be true.

Human beings act on
the basis of their imperfect understanding — and their decisions have
unintended consequences. That makes human affairs less predictable than
natural phenomenon. So Hayek was right in originally opposing scientism.

At the time of the Economica articles, Popper was between Hayek and the
socialist planners. He was just as opposed as Hayek to communism’s
threat to individual liberty, but he advocated what he called piecemeal
social engineering rather than laissez-faire.

Here I sided with Popper. But Popper and Hayek were not that far apart. I
was influenced by both — and I also found fault with both.

By identifying Hayek’s inconsistency and political bias, I do not mean
to demean him — but to improve our understanding of financial markets
and other social phenomena. We are all biased in one way or another and,
with the help of reflexivity, our misconceptions play a major role in
shaping the course of history.

Because perfection is unattainable, it makes all the difference how
close we come to understanding reality. Recognizing that the efficient
market hypothesis and the theory of rational expectations are both a
dead end would be a major step forward.

As in that earlier time, the political controversy on the role of the
state in the economy is raging today. But the standards of political
discourse have greatly deteriorated. The two sides used to engage in
illuminating arguments; now they hardly talk. That is why I was so
pleased to accept this invitation to the Cato Institute.

As I see it, the two sides in the current dispute have each got hold of
one half of the truth. which they proclaim to be the whole truth. It was
the hard right that took the initiative by arguing that the government
is the cause of all our difficulties; and the so-called left, in so far
as it exists, has been forced to defend the need for regulating the
private sector and providing government services.

Though I am often painted as the representative of the far left — and I
am certainly not free of political bias — I recognize that the other
side is half right in claiming that the government is wasteful and
inefficient and ought to function better.

But I also continue to cling to the other half of the truth — namely
that financial markets are inherently unstable and need to be regulated.

Above all, I am profoundly worried that those who proclaim half truths
as the whole truth, whether they are from the left or the right, are
endangering our open society.

Both Hayek and Popper, I believe, would share that concern. Those of us
concerned with the protection of individual liberty ought to work
together to restore the standards of political discourse that used to
enable our democracy to function better.

 

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Fri, 04/29/2011 - 14:23 | 1221452 Cognitive Dissonance
Cognitive Dissonance's picture

Now that they have successfully started the avalanche it's time for all the midnight conversions. Let the real money hoarding begin.

Fri, 04/29/2011 - 14:34 | 1221514 Arius
Arius's picture

"That is why I was so pleased to accept this invitation to the Cato Institute."

I love it when he appears like a commoner....you know just happened to pop in...walking right down the street and stopped by...

btw...with all whats going on...none has time to notice over here but it was really a great wedding over in UK of another commoner into the throne...the world is really changing ready or not....

Fri, 04/29/2011 - 14:46 | 1221569 Cognitive Dissonance
Cognitive Dissonance's picture

I guess the inbreeding experiments were finally judged a failure and they are trying to expand the royal gene pool.

Where's the chlorine when you need it?

Fri, 04/29/2011 - 14:52 | 1221599 Arius
Arius's picture

.

Fri, 04/29/2011 - 14:52 | 1221602 Arius
Arius's picture

if they are trying to expand the gene pool they would be well advised to include some of your lineal descendants in the potential pool... :-)

Fri, 04/29/2011 - 15:04 | 1221669 Cognitive Dissonance
Cognitive Dissonance's picture

Now that would really gum up the works.

I say use the chlorine and reboot. In fact I would argue that's exactly what they are doing.

Fri, 04/29/2011 - 14:58 | 1221646 Creed
Creed's picture

Soros is an evil fuck, but he aint stupid.

 

+ about a bajillion there

 

 

 

Sat, 04/30/2011 - 12:35 | 1224067 chumbawamba
chumbawamba's picture

He's not so much evil as just self-aggrandizing.  And his "theory" is complete garbage.  His "reflexivity" is just an over-complicated description of the "invisivible hand of the marketplace".

Fuck this stupid Statist fraud.  I say we lop his balls off first.

I am Chumbawamba.

Fri, 04/29/2011 - 15:02 | 1221667 Cognitive Dissonance
Cognitive Dissonance's picture

I wasn't talking about real money hoarding by Soros, but rather by the rest of the unwashed. I see these first signs of (fake) conversion as an early indicator that the economic washing machine is on the spin cycle and it's out of control. All hands on deck and every man, woman and child for themselves.

Fri, 04/29/2011 - 15:20 | 1221749 SWRichmond
SWRichmond's picture

I was personally most revulsed by Soros' crass and unforgivable inclusion of himself in a conversation that had anything to do with Hayek, thereby trying to elevate himself to the same level of credibility.  Just another rich guy running around saying "I'm rich, therefore I'm smart and you should care what I think."

Would any of you like to hear my professional critique of the Theory of General Relativity?  I didn't think so.

Fri, 04/29/2011 - 19:35 | 1222613 Missing_Link
Missing_Link's picture

Well said.  Ever since Soros bought the 2008 elections for Obama he's been convinced he's the center of the universe.

Sat, 04/30/2011 - 04:16 | 1223468 macholatte
macholatte's picture

Here you have it in the very first sentence>>>>

Friedrich Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources — as long as the government doesn’t interfere.

 

That was the way it was then. Today it should read like this:

 "...as long as the Soros Machine doesn’t interfere."

Interference is what Soros is really good at. So the rest of his thesis is just irrelevant mumbo jumbo.

 

 

 

Sat, 04/30/2011 - 08:22 | 1223595 High Plains Drifter
High Plains Drifter's picture

glenn beck, says that soros is the man with the plan behind trump. trump is really a democrat and they are just playing games........and to think, all of those idiotic tea party people saying they like trump. what fools , the amerikans are.......

Sat, 04/30/2011 - 12:27 | 1224053 chumbawamba
chumbawamba's picture

Yeah, vote for the other guy that will be presented as your alternate choice, because I'm sure that guy will fix everything.

I am Chumbawamba.

Fri, 04/29/2011 - 15:35 | 1221841 Imminent Crucible
Imminent Crucible's picture

Soros begins with a lie, deliberately confusing Hayek's efficiency of free markets with "Efficient Market Hypothesis".  If he starts with a lie, you know he'll end with a theft.

What a despicable human being.

Fri, 04/29/2011 - 15:51 | 1221910 Cognitive Dissonance
Cognitive Dissonance's picture

For the elite lies and lying is simply a commodity to be used, traded and replenished. It's not personal.........unless you're on the wrong end of the lie.

Sat, 04/30/2011 - 04:20 | 1223469 macholatte
macholatte's picture

"All that is needed for evil to triumph is for good men to do nothing."   - -Edmund Burke

"History is written by the victors." -Machiavelli

"Those who cannot remember the past are condemned to repeat it." -George Santayana (1863-1952),

 

 

Sat, 04/30/2011 - 07:42 | 1223491 AnAnonymous
AnAnonymous's picture

For the elite lies and lying is simply a commodity to be used, traded and replenished. It's not personal.........unless you're on the wrong end of the lie.

 

Because the common US citizen behaves differently?

There is no discontinuity between the US elite and its US base. Only resentment by some US citizens who wish they were elite or are no longer part of the US base.

Fri, 04/29/2011 - 18:17 | 1222391 Sean7k
Sean7k's picture

I had to laugh at his explanation of equilibrium and bubbles being the two extremes. I guess he just shot past deflation- the actual opposite to a bubble/inflation. Equilibrium is in the middle big guy- probably why they call it equilibrium.

Of course, that would have shot his whole argument down- guess that's why he framed it in those terms. 

Have to love it when these socialists tie together communism and efficient allocation of markets. Free markets- communism- boo!

Government equals control and control is the polar opposite of liberty. You can't have freedom and government. 

Regulation? When has that ever worked? Really, except for the Soro's of the world. They write the regulations via their paid assistants (congressman, presidents, supreme court justices), have them administered and upheld as law. This is totalitarian rule by the wealthy painted as democracy.

Soros, you couldn't hold a candle to Hayek. But then, I don't hear too many people proclaiming that besides you- jerk.

Sat, 04/30/2011 - 04:28 | 1223478 RichardP
RichardP's picture

You can't have freedom and government.

That is a seriously uninformed statement, and too general to boot.

There is no such thing as absolute freedom, so the only thing we can discuss is constrained freedom, and then define the term:  freedom from what?  Or freedom to do what?  Society is group interaction, with each group trying to gain an advantage over the other.  Thus, freedom for one group generally means lack of freedom for another group.  In creating and imposing rules, governments create freedoms for some groups at the expense of curtailing freedoms for others.

Examples:  With no traffic rules, gridlock results fairly quickly and no one is free to move.  With traffic rules enforced, everybody is free to get from Point A to Point B with relative ease.  Child labor laws create freedom for the child to be a child.  Business looses the freedom to exploit cheap labor.  Interstate commerce law create freedom for businesses to know what to expect when doing business in multiple states.  There are many more examples.

Sat, 04/30/2011 - 08:07 | 1223584 Sean7k
Sean7k's picture

Actually, there is such a thing as absolute freedom. However, it is difficult to attain in a world of government. Thus, my statement. It assumes you can identify polar opposites and apply reason to the reality for most people or constrained freedom. 

Here, you miss the mark. Governmnet cannot create freedom. It can only impose law. There is never freedom in the law, there is only control of varying degrees and for various people.

Examples: traffic rules have nothing to do with government. Any group of people can come up with a set of rules and agree to employ them- sans a police power. In fact, that is where AAA came from, along with the use of signs and general rules of the road. Unfortunately, governmnet has determined that there are opportunities for taxation and fees causing driving to become part freedom and part concern for the lurking taxman.

Child labor laws forced families to change their economic structure as wages were lost. While workplace conditions improved for children, it made them less employable and caused the family to make difficult decisions about how to care for them. Employers found new groups to take advantage of- immigrants and prison labor. The children then were forced to attend a mandatory education system where they were inculcated with propaganda and a declining quality of learning. There is little freedom in ignorance.

Interstate commerce laws do nothing more than enrich one group at the expense of another. They have been further utilized to accumulate power in the federal branch at the expense of the states. While it has been used to benefit those who suffered from racism, etc. , in general, it has merely amassed power and restrained freedom.

You suffer from a common ailment or illusion: that government is necessary. Outside of providing some form of common defense, there is not one social action that cannot be provided by citizens acting in community. 

All governments are run by a small minority for their own benefit. The police power of the state never lessens, it only grows. Consequently, your freedoms disappear with it. You may enjoy being told what you can say or watch. What your children will learn and how. Lied to about history and events. Taxed and fee'd to the point where half your earnings are confiscated. Emails intercepted and phone calls listened to. Gropped at airports. Eating poisoned food, breathing poisoned air and drinking poisoned water. Told what you can do on your property, a property you can never own. You may even enjoy the manipulation of markets and the protection of bankers with YOUR tax dollars. 

Your concept of freedom is exactly what the government would have you believe.

Sat, 04/30/2011 - 10:07 | 1223750 amsterdamzero
amsterdamzero's picture

+ SIC SEMPER TYRANNIS!

Sat, 04/30/2011 - 11:04 | 1223839 i-dog
i-dog's picture

+1, again. Nicely done.

Actually, I see an opportunity for a Free State (an oxymoron, I know, but I'll stick with it for the purpose of illustration) that could be created with the breakup of the former USA.

Let's say the states on the 'left coast' were to form a "perfect union" of high taxation welfare states ... and the states on the 'right coast' were to form a "perfect union" of plantations, slave labour, modest or no taxation, massive tariffs and an aggressive military [again].

That would leave some states in the 'centre' to form a chain of free 'states' - from North Dakota to Texas - with no government and totally free trade and travel between each other and the left and right coasts. Competing service providers would cater for everything from banking, currencies and communications to garbage collection and road maintenance. Workers and investors from Mexico and Canada would also be welcome.

Defence would be adequately catered for with a few strategically hidden nukes that would discourage the left coast from looting and the right coast from colonising ... such nukes maintained by voluntary funding from those citizens who were actually concerned about an invasion from either side. (But what would invaders achieve ... with no tax base and bureaucracy for the left coast to raid and a well-armed populace to resist colonists from the right coast?)

Just some instant thoughts.

Sat, 04/30/2011 - 16:10 | 1224395 blunderdog
blunderdog's picture

I think if you want to dismantle the USA, just do it right and forget all that federated talk of states.

Sun, 05/01/2011 - 09:17 | 1225273 i-dog
i-dog's picture

That's my preference, too. But there will always be the raghead-fearing warmongers who will never let go of a government that doesn't have an offensive military capability, and socialists who will never let go of a nanny state, and some (like me) who want government out of the picture altogether. Problem solved ... rather than another 2 centuries of trying to get everyone on the same page under a single government!

Sun, 05/01/2011 - 07:05 | 1225184 Baptiste Say
Baptiste Say's picture

Well put.

Sat, 04/30/2011 - 00:35 | 1223282 mdwagner
mdwagner's picture

The only thing we need to be protected from is monopolies.  We also have the added problem of government shifting risk to taxpayers which protects the free-market regulator of failure.

Sun, 05/01/2011 - 07:04 | 1225186 Baptiste Say
Baptiste Say's picture

Name a monopoly that came to exist without the government.

 

Only one most can think of is De Beers and even then it is not valid because there is a huge amount of government approvals needed to open a mine, where approvals are needed corruption exists.

Fri, 04/29/2011 - 20:12 | 1222725 punishmentnotrevenge
punishmentnotrevenge's picture

Nothing to see here folks!  Keep moving..., Oh look a royal wedding, Oh look the Trump said Fuck! Never mind the rednecks in the South the'll be ah-right. Gold 1550, Silver approaching 50 and oil still cruzin!  Oh yeah the frikin loony at .95 on the dollar.  Nothing wrong, nope we're good!

 

Fri, 04/29/2011 - 20:17 | 1222734 punishmentnotrevenge
punishmentnotrevenge's picture

Nothing to see here folks!  Keep moving..., Oh look a royal wedding, Oh look the Trump said Fuck! Never mind the rednecks in the South the'll be ah-right. Gold 1550, Silver approaching 50 and oil still cruzin!  Oh yeah the frikin loony at .95 on the dollar.  Nothing wrong, nope we're good!

 

Sat, 04/30/2011 - 11:52 | 1224003 ambrosiac
ambrosiac's picture

 

> Though I am often painted as the representative of the far left

 

WTF?!

 

Fri, 04/29/2011 - 14:24 | 1221463 bania
bania's picture

Where does Palpatine find the time to write this stuff?

Fri, 04/29/2011 - 14:40 | 1221548 BobPaulson
BobPaulson's picture

You're implying he wrote this?

Fri, 04/29/2011 - 14:53 | 1221628 Doode
Doode's picture

If you read any of his books - which were amazingingly on point about markets you could easily tell it was in fact written by Soros. Stylistically identical to all of this previous work.

Fri, 04/29/2011 - 18:05 | 1222352 dark pools of soros
dark pools of soros's picture

he speaks it and his lesser demon minions scribe his words using debt prisoner soul's as ink 

Fri, 04/29/2011 - 15:01 | 1221663 Pool Shark
Pool Shark's picture

 

Never underestimate the power of a Sith...

 

Fri, 04/29/2011 - 14:28 | 1221469 Mongo
Mongo's picture

What a SOB.

 

 

Fri, 04/29/2011 - 14:29 | 1221476 solgundy
solgundy's picture

is this a joke?????

Fri, 04/29/2011 - 14:32 | 1221503 Confuchius
Confuchius's picture

Anything sikos sez is bound to be a sick joke.

Fri, 04/29/2011 - 14:59 | 1221662 redpill
redpill's picture

but but but it was the COMMUNISTS!!!

Fri, 04/29/2011 - 14:41 | 1221536 solgundy
solgundy's picture

is this a joke?????

Fri, 04/29/2011 - 14:26 | 1221472 Dr. No
Dr. No's picture

Said Chancellor Palpatine to the Senate in hopes of gaining support for his initiatives.

Fri, 04/29/2011 - 14:29 | 1221477 bob_dabolina
bob_dabolina's picture

This is positive. Moving towards the Austrian school of econ. 

Now if only we could turn him from being a staunch communist to a liberatrian the world would be a better place.

Fri, 04/29/2011 - 14:46 | 1221566 ATM
ATM's picture

Communists??? - No.

Arogant, authoritarian, fuckhead - yes. 

Fri, 04/29/2011 - 14:31 | 1221481 Spitzer
Spitzer's picture

How did Jim Rogers and the ugly fuck ever get along ?

Fri, 04/29/2011 - 14:36 | 1221522 Confuchius
Confuchius's picture

Now we've found the perfect boy?friend for Blythe...

Fri, 04/29/2011 - 14:53 | 1221630 Ropingdown
Ropingdown's picture

Rogers and Soros worked together during a period in which both men wanted one thing, to make money trading, lots of it.  Soros is now in his Seeking Intellectual Repute phase, in which he seeks to construct theories that reveal a basis for his prior success.  The need he has is to be esteemed for something other than jumping big on the mispriced currencies and bonds of weak governments.  He wants to be Marx now, no longer Beria, just taking out currencies and shooting them.  He wants to explain why they had to be shot.

Fri, 04/29/2011 - 14:59 | 1221664 Creed
Creed's picture

 He wants to be Marx now, no longer Beria, just taking out currencies and shooting them.  He wants to explain why they had to be shot.

 

 

very nice

 

since you seem to know a lot about him, did his original fortune stem from his activities in hauling Jews out for the Nazis? or was that family money or derived from later good works

Fri, 04/29/2011 - 18:18 | 1222399 dark pools of soros
dark pools of soros's picture

and like the Jews earned all their money like angels...   if the Jews were so great why didn't they support their own country and army, etc....  parasites

Fri, 04/29/2011 - 15:10 | 1221711 A Lunatic
A Lunatic's picture

Why can't he just be satisfied with 57 channels and a sixer in the fridge like everyone else?

Fri, 04/29/2011 - 14:30 | 1221491 misterc
misterc's picture

I'M IN LOVE WITH HAYEK (SONG & COOL VIDEO)

http://www.youtube.com/watch?v=psosLpDALuA

Fri, 04/29/2011 - 14:30 | 1221492 Cinfultreat
Cinfultreat's picture

I stopped reading at Chicago, pics of Salma Hayek would have been a better thread.

Fri, 04/29/2011 - 14:38 | 1221520 PingaYourFace
PingaYourFace's picture

Agreed.

Fri, 04/29/2011 - 15:34 | 1221831 A Nanny Moose
A Nanny Moose's picture

Ditto

Fri, 04/29/2011 - 14:31 | 1221493 Clinteastwood
Clinteastwood's picture

All a bunch of fine-sounding rhetoric.....but where is he putting his money?  Hint: BO is his bo.

Fri, 04/29/2011 - 14:43 | 1221495 redpill
redpill's picture

Disingenuous bullshit.  He paints himself as being in the middle, and he is not.  He paints Hayek as being a disciple of the Chicago school of economics, which is totally wrong.  

The juxtaposition of his terminology of "hard right" versus "so-called left" reveal his immediate and complete bias.  Not only is he "not free from political bias" he is in fact consumed with it.  Not only thoroughly absorbed into the false right-left dichotomy but is celebrating it.

Many of those who are arguing against the government's role are NOT just saying government "ought to function better" as Soros fraudulently infers is the extent of their criticism, they are saying there should be LESS OF IT.  LESS CENTRAL PLANNING, LESS GOVERNMENT.  NOT just more efficient central planning.

Soros is a hack, a snake, and an all around fuckhead.

Fri, 04/29/2011 - 14:41 | 1221557 tmosley
tmosley's picture

Indeed.

It's so easy to get rich when you have the awesome brute force of the state at your beck and call as Soros does.

Fri, 04/29/2011 - 16:57 | 1222080 akak
akak's picture

Well said Redpill.

Plus, I never trust any man whose name is a palindrome.

Fri, 04/29/2011 - 18:38 | 1222453 BigJim
BigJim's picture

:-)

Fri, 04/29/2011 - 14:33 | 1221498 legal eagle
legal eagle's picture

Spitzer, hypocrits not wanted, thank you.

Fri, 04/29/2011 - 14:31 | 1221499 Tao Jonesing
Tao Jonesing's picture

Yeah, Hayek was an acolyte of the Chicago School of economics.

Right.

What a confused idiot the author is.

Fri, 04/29/2011 - 14:33 | 1221504 G. Marx
G. Marx's picture

Hayek is not "The Chicago School." He is "The Austrian School."As far as I know he's never promoted the notion of the "efficient market hypothesis." The Chicago School is Fisher and Friedman. That fact he confuses the two shows either his creeping dementia or economic ignorance. Take your pick. Sucking up to Cato (it's filled with Friedmenites), screw him and screw Cato for inviting him and I say that as a Rothbardian libertarian.

Fri, 04/29/2011 - 14:44 | 1221558 Misean
Misean's picture

Right on! Couldn't have said it better myself.

Fri, 04/29/2011 - 14:51 | 1221597 N_Jones
N_Jones's picture

+1

Fri, 04/29/2011 - 14:53 | 1221607 Rogerwilco
Rogerwilco's picture

Soros is a bit out of touch if he thinks American universities align with Friedman and Hayak. When I studied economics in the early '80s, most of the faculty made it a point to ridicule the Chicago School and their "monetarist" ideas. Keynes was their darling.

Fri, 04/29/2011 - 14:57 | 1221655 redpill
redpill's picture

And from what I've heard that's still the case.  Keynes is glorified, Chicago mocked, Austrian ignored.

Fri, 04/29/2011 - 15:39 | 1221855 A Nanny Moose
A Nanny Moose's picture

That just about sums of the state of affairs of economics education.

Fri, 04/29/2011 - 14:55 | 1221642 spekulatn
spekulatn's picture

You know as well as most here that the palindrome is just planting more seeds to confuse. Nothing but another smoke screen. Mr. Beck sure got under his skin. No doubt about it.

Fri, 04/29/2011 - 15:07 | 1221691 gorillaonyourback
gorillaonyourback's picture

good fucking lord thank you for stating the obvious, this writer is george soros?

Fri, 04/29/2011 - 19:25 | 1222581 --- - .. ... .....
--- - .. ... .... . .-. - --..'s picture

This description of common knowledge should be good for at least one Nobel Prize.

 

Move over Kruggles! Soros is eating your taffy!

Fri, 04/29/2011 - 15:12 | 1221708 hardcleareye
hardcleareye's picture

In 1950, Hayek left the London School of Economics for the University of Chicago, becoming a professor in the Committee on Social Thought. Hayek's first class at Chicago was a faculty seminar on the philosophy of science attended by many of the University's most notable scientists of the time, including Enrico Fermi, Sewall Wright and Leó Szilárd. During his time at Chicago, Hayek worked on the philosophy of science, economics, political philosophy, and the history of ideas. Hayek's economic notes from this period have yet to be published. He did not become part of the Chicago School of Economics, although his recognition of the impact that demand and velocity had on money were a fundamental influence on it.[21]

Sat, 04/30/2011 - 03:03 | 1223413 AnAnonymous
AnAnonymous's picture

Soros never said that Hayek was part of the Chicago School of Economics.

 

Hayek propagated two beliefs, that happened to be shared by Chicago Schools of Economics.

 

Sat, 04/30/2011 - 04:32 | 1223482 i-dog
i-dog's picture

"Friedrich Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources ...... This is usually called the Chicago School ........ I call it market fundamentalism."

Reading isn't your strong point, is it?

Sat, 04/30/2011 - 05:05 | 1223494 AnAnonymous
AnAnonymous's picture

In all obviousness, much stronger than your ability to spin. This recalls the object notion, meaning etc put immediately before or the closest to. You indulged yourself in a pretty cheap propaganda trick by editing the text in such an obvious manner.

 

From:

Friedrich Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources — as long as the government doesn’t interfere. It is a formalized and mathematical theory, whose two main pillars are the efficient market hypothesis and the theory of rational expectations.

This is usually called the Chicago School, and it dominates the teaching of economics in the United States. I call it market fundamentalism.

 

yo go to

 

"Friedrich Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources ...... This is usually called the Chicago School ........ I call it market fundamentalism."

 

Scrapping the part this recalls.

 

Pretty cheap propaganda. If US citizens want to conserve, they should get rid of their propagandists, hooked on cheap propagandists. Problem, that would lead them to get rid of a large number of themselves as they are so many in cheap propaganda.

 

Sat, 04/30/2011 - 08:13 | 1223579 i-dog
i-dog's picture

"your ability to spin ....... pretty cheap propaganda trick ...... Pretty cheap propaganda ......... their propagandists ........ cheap propagandists ......... in cheap propaganda"

You've learned your lessons well in Trolling101 ... congratulations! Bernays would be proud of you for managing to seamlessly combine 'Endless Repetition' with 'Projection' (google it!) in just a few short sentences ... though you will lose a few marks for 'Making It Too Obvious' when your supervisor checks it in the morning. Sorry.

Get an honest job, sock puppet!

Sat, 04/30/2011 - 09:31 | 1223686 AnAnonymous
AnAnonymous's picture

Save the ad hominems, do you have something else to offer, something that could save your pitiful attempt at propaganda?

Projection, US citizens know a lot about that. They often accuse others of what they do themselves. It is part of the US culture sort of.

Fri, 04/29/2011 - 16:23 | 1221996 anarchitect
anarchitect's picture

Yes, CATO sold out a lot time ago, becoming content to water down their message and schmooze with congresscritters and other sphincters.

Fri, 04/29/2011 - 23:10 | 1223113 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

creeping dementia or economic ignorance. Take your pick.

Another choice might be: piecemeal social engineering, to take a line from the article.

His worshippers would probably call you an extremist for contradicting him.  The day any of them would believe Austrian-school instead of Chicago-school is never -- George already told them how it is.

Fri, 04/29/2011 - 14:35 | 1221505 entendance
entendance's picture

<...Bank Profits and Other Fantastic Tales...>
http://www.entendance.com/forums/viewtopic.php?f=7&t=643&p=16664#p16664

Fri, 04/29/2011 - 14:36 | 1221524 Re-Discovery
Re-Discovery's picture

Just in time to shift the remainder of his fiat into real assets and take over the world.

Didn't survive as a jew in nazi-occupied Hungary by being stupid.

Fri, 04/29/2011 - 14:38 | 1221525 apberusdisvet
apberusdisvet's picture

This is a piece of crap.  First of all, the author is an subtle Marxist.  Second he lies when he says Hayek is predominant at the best schools; definitely untrue.  Economic education at Harvard, MIT and his alma mater LSE, are strongly slanted towards the globalist view, which is decidedly against free market capitalism except when it can be "massaged" for the benefits of the corporate fascists.  Third he fails to note that the financial regulators have all been co-opted and corrupted, especially the SEC, CFTC, FDIC, thus destroying the Rule of Law that is essential for any markets to work efficiently.

Fri, 04/29/2011 - 14:46 | 1221572 redpill
redpill's picture

I disagree, I don't think he's that subtle.

Fri, 04/29/2011 - 14:54 | 1221638 Double down
Double down's picture

A+

Fri, 04/29/2011 - 14:37 | 1221528 Jim B
Jim B's picture

GAG REFLEX!

 

Fri, 04/29/2011 - 14:42 | 1221531 disabledvet
disabledvet's picture

what is this?  a judicial inquiry?  markets are not "run"...they "run"--a good place to start outside of the theory of "breaking the buck" is asking the simple question "tell me something i don't already know" and proceed from there.  why it's a slam dunk for me to tell anyone who cares to listen "keep smelling the glove, real estate" is because "they aren't building NEW homes."  equity markets don't have that problem:  "we can build new companies."  obviously "this is not without risk"!  it's when it's done "without capital" however that i think we have a problem.  (of course what made 90's fun is even that wasn't a problem!)  "Gold prices rise."  And?  "tell me something i don't already know."  "Gold prices rise $500--in five minutes."  That's the definition of "news."  Something I don't already know.  If you are interested in knowing "what's going on inside that guy's head" by all means...

Fri, 04/29/2011 - 14:39 | 1221533 firstdivision
firstdivision's picture

∑QEx^y = ∫∫QEx^y dydx = Weimar/Zimbabwe/US

 

Fri, 04/29/2011 - 14:48 | 1221575 Misean
Misean's picture

You forgot the parentheses. Is it

( Weimar/Zimbabwe)/US or Weimar/(Zimbabwe/US)?

Fri, 04/29/2011 - 23:12 | 1223120 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

ERR: div by zero

Fri, 04/29/2011 - 14:42 | 1221540 williambanzai7
williambanzai7's picture

Fri, 04/29/2011 - 14:55 | 1221604 Chuck Walla
Chuck Walla's picture

This so nails that cock-sucking Commie liar. Well, George isn't a Commie, he's going to keep his, he just wants you and I to live under it. For our own good don't cha know?  He has not forgotten the lessons he learned on the Gestapo's knee.

Fri, 04/29/2011 - 14:56 | 1221648 Doode
Doode's picture

The theory of reflexivity is spot on. The guy made a tonn off of it and he deserves the right to look down on most. Even though I do not agree with his liberal ideas.

Fri, 04/29/2011 - 14:40 | 1221542 Bastiat
Bastiat's picture

He must of watched those rap videos . . . but not enough times.

Fri, 04/29/2011 - 14:39 | 1221545 web bot
web bot's picture

Soros is complicating things with intellectual elegance.

The reason 2008 happened was due to a break down in regulatory common sense which promoted the worst of excesses of human greed. 2008 was due to a bunch of greedy ba$tard$ in a corrupt system gaming it to pad their bonuses and performance.

#uck this intellectual navel gazing nonsense. I know quasi illiterate farmers that don't need to read this self-serving drivel to know a crooked system with they see it.

Fri, 04/29/2011 - 14:52 | 1221601 Misean
Misean's picture

Regulatory common sense is to work for the bureau for a few years then go to work for Goldman Sucks, Shiti, the Morgue, or Skank of Countryfried Merril America. So, clearly the regulators were doing exactly what they were supposed to do: punish small fries who get out of line and cover the shit that the big boys were generating in fragrant rose petals. So yes, regulators are part of the problem, but BECAUSE they did their jobs.

Fri, 04/29/2011 - 15:11 | 1221701 Rick64
Rick64's picture

  I agree. It always seems these so called economic geniuses over complicate issues maybe because it works in their favor. Greed overcomes all their theories and renders them useless. If there is no accountability then there are no consequences. Why is there no accountability and regulatory capture because of greed.

Fri, 04/29/2011 - 15:48 | 1221885 KinorSensase
KinorSensase's picture

I know quasi illiterate farmers that don't need to read this self-serving drivel to know a crooked system with they see it.

3 cheers.

But wait...rich people are saying it works this way, even though it looks like it works that way...I'm so confused I'll just listen to the wise rich man and follow the herd!  Please decide for me, I've lost my ability to question authority and think critically!  arg!

Fri, 04/29/2011 - 19:17 | 1222554 Kickaha
Kickaha's picture

Recipe for 2008:

Create all sorts of new classes of derivative securities.  Convince people they have value, or kite them back and forth.

Claim they have value.  Put them on balance sheet.  Leverage them 40:1.

Put some kids in charge of this massive hoard of wealth and let them gamble with it.  Pay them huge commissions for doing so.

Put your bitchez in charge of the regulatory system.

Nothing has changed.

Fri, 04/29/2011 - 14:42 | 1221546 divide_by_zero
divide_by_zero's picture

The term "open society" to Soros means quite the opposite, he learned well from the Nazis and communists.

Fri, 04/29/2011 - 14:43 | 1221551 Misean
Misean's picture

" It is a formalized and mathematical theory, whose two main pillars are the efficient market hypothesis and the theory of rational expectations."

Ermmmm...no it isn't. Schumpeter is, to an extent. Hayek was primarily logical. The Chicago school is neo-classical mathematical based on the likes of Walras. Who wrote that drivel? I guess attempting to malign the Austrian camp as a bunch of Chicago schoolers or Cato-ites (neo-clown war pigs in libertarianesque drag) is all the rage among the statists. Like the early 19th century redefinition of liberal as a state worshipping moron.

Fri, 04/29/2011 - 14:50 | 1221605 redpill
redpill's picture

I think you've hit on it.  This is a deliberate attempt to construct a strawman and characterize Austrians as Chicagoites, because it's a hell of a lot easier to nit pick the latter.

Fri, 04/29/2011 - 16:25 | 1222008 anarchitect
anarchitect's picture

Precisely. The Austrian school explicitly rejects all the mathematical claptrap that infests other schools of economics. Austrians are qualitative, not quantitative; subjective, not objective; and rely on logic and thought experiments to deduce economic outcomes.

Fri, 04/29/2011 - 18:41 | 1222455 iLoveMisesToPieces
iLoveMisesToPieces's picture

The very foundation of Austrain Economics is subjective value theory which states that you can't quantify value.  Chicago school is the polar opposite and basically states we are all robots and make decisions in a very predictable and quantifiable way.  I completely agree this is just an attempt to try and muddy the waters and do whatever it takes to keep the central bank.

Fri, 04/29/2011 - 14:41 | 1221553 MrPike
MrPike's picture

Soros has always been a bit confusing to peg down. It always appears when he speaks of investments, he has an Austrian perspective.  However when he speaks about philosophy, its total left wing looney.  He also thinks of himself as an ameteur philosopher, the trouble for him is he's not a very powerful thinker. He fancies himself the next Plato, but his ramblings are utter nonsense and he seems to have his head firmly in his ass.

 

The fact that he's a Rothschild lackey further invalidates just about everything he says.

Fri, 04/29/2011 - 14:41 | 1221556 Diamond Jim
Diamond Jim's picture

face it, economics is no science, period.

Fri, 04/29/2011 - 14:48 | 1221591 AnAnonymous
AnAnonymous's picture

You wont make many friends with that kind of statements. Just read how the religious believers argue over their respective church. Hayek is not a member of the Chicago Church.

 

Funny... Chicago church of economics and Hayek are strongly intertwined. But what, better to let religious people discuss their creed and membership.

Fri, 04/29/2011 - 14:54 | 1221622 Misean
Misean's picture

Funny, Austrians consider economics a social science/philosophy, not a hard science.

Fri, 04/29/2011 - 17:04 | 1222099 AnAnonymous
AnAnonymous's picture

But still a science. Comical.

Fri, 04/29/2011 - 18:46 | 1222466 WaterWings
WaterWings's picture

Bunk science.

It's a horror-comedy.

Fri, 04/29/2011 - 14:44 | 1221571 nothing can go wrogn
nothing can go wrogn's picture

This guy is so full of horseshit he makes The Bernank sound like a straight shooter.

Fri, 04/29/2011 - 14:52 | 1221620 Re-Discovery
Re-Discovery's picture

He's not paid to tell us what to do, and we certainly don't have to listen.

Fri, 04/29/2011 - 15:08 | 1221687 nothing can go wrogn
nothing can go wrogn's picture

He's not paid to tell us what to do, but he pays a lot of people that tell us what to do.

 

Fri, 04/29/2011 - 15:32 | 1221826 Re-Discovery
Re-Discovery's picture

here, here

Fri, 04/29/2011 - 14:45 | 1221573 legal eagle
legal eagle's picture

Economics is a science like evolution is a science, they find a bunch of random facts and try to make sense of it, the rest is theory and gambling

Fri, 04/29/2011 - 18:46 | 1222482 BigJim
BigJim's picture

If you believe this, then I've got just the book for you:

http://mises.org/rothbard/mes/introduction.asp

Sat, 04/30/2011 - 02:33 | 1223386 AnAnonymous
AnAnonymous's picture

Like offering a Bible to a guy who speaks about the nature of religion.

"if you believe this, then I've got just the book for you: the Bible"

Fri, 04/29/2011 - 14:49 | 1221581 MrMorden
MrMorden's picture

Obviously a towering intellect like Soros can find all the holes in the reasoning of a moron like Hayek.

 

Or not.

Fri, 04/29/2011 - 14:47 | 1221585 Chuck Walla
Chuck Walla's picture

And what Georgi can't get the "hands" to do, he buys outright. Or at least buys the media to spin things correctly, that being whatever makes Georgi money. Or is there still someone out there that thinks Georgi just  loves us all so?

Fri, 04/29/2011 - 23:24 | 1223132 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Or is there still someone out there that thinks Georgi just  loves us all so?

They really do exist I swear.

Fri, 04/29/2011 - 14:50 | 1221588 LawsofPhysics
LawsofPhysics's picture

"The fact that he's a Rothschild lackey further invalidates just about everything he says."-  That is all anyone needs to know.  Yeah there are a lot of "theories" that my business depends on every day.  Electricity being but among one, along with population genetics and numerous "theories" on the evolution of protein structure and function.  I don't think our contributions to vaccine research and biologics would work otherwise and we would be out of business.

As the bread becomes scarcer during all this "bread and circus", guys like Soros will only try to justify with more intensity why they should not be lead to the guillotine.

Fri, 04/29/2011 - 15:10 | 1221694 disabledvet
disabledvet's picture

yeah.  where is the "bread in this circus"?  Marx!  You promised!

Fri, 04/29/2011 - 14:50 | 1221593 legal eagle
legal eagle's picture

Law, liberty and legislation!

Fri, 04/29/2011 - 14:51 | 1221598 Chump
Chump's picture

He starts by saying Hayek's school of thought (incorrectly called The Chicago School - WTF?) dominates America's economic institutions?  Was he drunk when he wrote this?

Fri, 04/29/2011 - 15:19 | 1221744 A Lunatic
A Lunatic's picture

Just a historical revisionist as a matter of convenience bullshitter. It's a lot like being drunk though.

Fri, 04/29/2011 - 18:06 | 1222348 JW n FL
JW n FL's picture

Chump,

Your ugly and your Momma dresses you funny.. as well I miss your lil wanna be fucking distancing yourself from your Muslim Brotherhood.

 

so here's your answer!

 

 

 

 

 by Chump
on
Fri, 04/29/2011 - 10:50
#1220407

 

No, his point was to compare the beliefs and actions of Baptists and Muslims. 

JW n Kindeegawden said:

 

the Muslim Right.. like the Baptists here want the end to come! so that the second coming will come!

The two are incomparable.  The fact that you have to go back 4 centuries to find even a remotely plausible comparison only serves to highlight how vapid your argument is.  When are these goat fuckers going to socially evolve with the rest of us?

Likely never; they'd rather bring us all back to the 6th century.  And while they're actively trying to bring that result about, you're arguing that they're comparable to Baptists.  There are not words to describe the depth and breadth of your pig-ignorance.

Last post on this until someone burns a Bible and gets beheaded by a Baptist.

 

 

 

I dont get emails when people respond.. and I am sorry that I am just now seeing this shit...

 

First off... Baptists spread the word.. and pray for the end.. and spout off endlessly about hellfire for any and all sins.

 

Baptists BOMB abortion Clinics... do you want me to Google it for you or are you good?

 

Baptists do hunt down and Target Abortion Clinic Personal...

 

Now would you like me to dumb down how the fucking idiot Baptists and the towel heads are two of the same? Praying for the end? Bombing everyone else and Judging everyone else.. putting people to death...

 

I am Catholic, and I just can NOT! fucking wait to start up the Crusades again! we killed more Baptists than Muslims the last time out.. and I can only pray that we can do better than last time.

 

Spreading the Word and pontificating about eternal hell fire dont cut it. Acts are what count.

 

I am personal messaging this fucking piece of shit this too so everyone knows he got the fucking message.

 

Fri, 04/29/2011 - 19:28 | 1222599 web bot
web bot's picture

I'm Catholic too... I just hope I dont' get drafted! lol

Fri, 04/29/2011 - 22:26 | 1223023 laosuwan
laosuwan's picture

the key difference for me between baptists and muslims is that when someone who calls themself a baptist bombs an aborition clinic (when was the last time that happened, anyay? 1989?) they are acting outside the teaching of their own religion and usually on their own. "When a muslim bombs an abortion clinic-church-saloon-restaurant-airplane-hotel-school bus-crowded market-etc they are acting in accordance with the teachings of their own religion and usually under the guidance of a cleric who is expert in teaching and purity of their religion.

baptists are preoccupie with the second coming and hereafter, muslims are preoccupied with cleansing the earth of non muslims as entry to the hereafter. heaven, the muslims say, sits atop a mountain of swords. death is not a short cut or aboration forthe muslim, it is the way.

Sat, 04/30/2011 - 02:41 | 1223397 AnAnonymous
AnAnonymous's picture

The two are incomparable.  The fact that you have to go back 4 centuries to find even a remotely plausible comparison only serves to highlight how vapid your argument is.  When are these goat fuckers going to socially evolve with the rest of us?

 

Again, this stupid argument. A job done is no longer to be done. Basic.

Dont go against it. If indeed the US history was one of religious diversity, you would have a point but the US history is one of decreasing religious diversity, starting with Christianity being a religion among others to finish with Christianity being the ultra dominant religion through forced conversion.

A job done is no longer to be done.

Sun, 05/01/2011 - 10:32 | 1225371 Chump
Chump's picture

How is this a response to what you quoted?  Your logic is:

Muslims are just like the Christians of the Crusades, therefore they are just like Baptists.

And in that same vein:

Oranges are just like tangerines therefore they are just like eleven.

Nonsense, similar to the rest of your comment.  Seriously, the US started out religiously diverse but has grown to become Christianity-dominant?  WTF?  Are we talking about America on planet Earth or is there another America on your home planet?

Sun, 05/01/2011 - 09:59 | 1225316 Chump
Chump's picture

JW the DP artist blathered:

I dont get emails when people respond.. and I am sorry that I am just now seeing this shit...

 

I don't spend my life on the innerwebs, so I am not sorry for not giving a shit.

 

First off... Baptists spread the word.. and pray for the end.. and spout off endlessly about hellfire for any and all sins.

 

So?  You get to choose not to listen, just like I generally ignore your ignorance until it reaches critical mass.

 

Baptists BOMB abortion Clinics... do you want me to Google it for you or are you good?

 

Yeah, Google it for me ding-dong.  If you want to make assertions then you have to back them up.  By the way, I'm going say I'm a Muslim and then go fuck a bunch of goats, thereby making all Muslims goatfuckers.  EZ as pie.

 

Baptists do hunt down and Target Abortion Clinic Personal...

 

No they don't.  Unless you mean target them for peaceful protest, as well they should.

 

Now would you like me to dumb down how the fucking idiot Baptists and the towel heads are two of the same? Praying for the end? Bombing everyone else and Judging everyone else.. putting people to death...

 

See, you include plausibly true comparisons with demonstrated false ones.  Disingenuous, lazy bullshit.  The MO of JW n Tardland.

 

I am Catholic, and I just can NOT! fucking wait to start up the Crusades again! we killed more Baptists than Muslims the last time out.. and I can only pray that we can do better than last time.

 

From lying to incoherence.

 

Spreading the Word and pontificating about eternal hell fire dont cut it. Acts are what count.

 

Egg-fucking-zachary.  When an entire religion can unite to make a force for evil that includes dedicated, continuous suicide bombings, beheadings, rioting, raping, and just general all around SHIT, and you compare them to Baptists, it just cannot be stressed enough how idiotic and asinine your comparison is.

 

I am personal messaging this fucking piece of shit this too so everyone knows he got the fucking message.

 

Translation: I have zero life outside the intertubes.  Who cares about your petty bullshit?

Have you taken my challenge yet?  Burned any Bibles?  I'll even up the ante for you.

Take a Bible and burn it as church is letting out today, right down south in Alabama, right in front of a Baptist church.

Then burn a Koran right in down town Saudi Arabia as prayers are letting out.  Remember, preaching and all that doesn't cut it.  It's the actions that matter.  Don't be a pussy, and make sure you record it.

Sun, 05/01/2011 - 10:25 | 1225355 Chump
Chump's picture

And Jacking Wanker, when I say "Google it" I mean find the thousands of links where prominent Baptists leaders call for holy war against, apparently abortionists, or whoever for that matter.  Include the thousands of links where other Baptists, acting on those religious decrees, bomb abortion clinics across the country, behead abortionists, rape them, beat them, take them hostage, and videotape their deaths.

Or you could just quit being a fucking pea brain and admit that the Muslims are not comparable to Baptists.  It's not hard, or at least it shouldn't be.  Or maybe you're too busy burning Korans in Saudi Arabia.  Don't be a pussy.

Fri, 04/29/2011 - 14:51 | 1221613 michael.suede
michael.suede's picture

"But I also continue to cling to the other half of the truth — namely that financial markets are inherently unstable and need to be regulated."

No.

Fractional reserve banking (which is a form of fraud) is inherently unstable and needs to be regulated.

 

 

Fri, 04/29/2011 - 18:52 | 1222489 BigJim
BigJim's picture

Regulated? Outlawed, methinks.

Fri, 04/29/2011 - 23:35 | 1223162 Kimo
Kimo's picture

+10

Absolutely right... and countless comments before I find what I am already thinking should be obvious to everyone.

This author lives in a world that balances 10 tea cups on a wobbly table, and wonders why it's unstable.

The need is not regulation, its outright prohibition!

Fri, 04/29/2011 - 15:00 | 1221633 Bazooka
Bazooka's picture

The extreme and manic euphoria for QE by Fed has caused everyone (herd) to think that the Fed can control the market.

In a word, NO!

The market is far more powerful than the Fed or any Governement.

Also, nearly everyone asks...how can market go up on bad news? Be assured, endogenous social mood drives the markets which is a reflection of mood. Once mood turns down again from this temporary (25 months long) reflation, the stampede for the exit will be much greater than 2008 since that was only primary wave 1 down and soon coming will be the primary wave 3 down. Many will also ask, How can market crash with so much good news? The error is in linear extrapolation.

Disclosure: Cash or equivalents, FAZ long, VXX long, UUP long, S&P long term puts. I have and am incrementally adding to these positions. I'm early and always have been.

The contempt for the Fed will grow to an outright rage and blame. Self survival will force Fed to reignin their destructive attempts. Negative social mood will make sure of this.

Also, crazy as Gerald Celente's predictions might seem, I also believe a WWIII might be at hand.....it's the perfect diversion the government can use away from depression...always worked in the past.

Fri, 04/29/2011 - 15:09 | 1221707 disabledvet
disabledvet's picture

technicals matter, i agree.

Fri, 04/29/2011 - 22:22 | 1223000 baby_BLYTHE
baby_BLYTHE's picture

Celente may be a goof at times, but one cannot deny his uncanny Foresight into almost everything we currently witness unfolding across the globe

Fri, 04/29/2011 - 14:56 | 1221634 Cthonic
Cthonic's picture

I've read a lot of Hayek, and I don't recall him ever espousing the "efficient market hypothesis" either in name or in concept.

Fri, 04/29/2011 - 15:03 | 1221668 Misean
Misean's picture

He didn't. And he, like Mises, was NOT an advocate of mathematical econometrics. In fact, he was a rather harsh critic of the mathematicians "evenly rotating economy" and equilibrium models.

Fri, 04/29/2011 - 23:01 | 1223093 StychoKiller
StychoKiller's picture

There is something similar to Heisenberg's uncertainty principle within Economic Knowledge.  Humans use what, around 10% of their brainz and Economists "think" they can simplify an n-dimensional set of polynomial equations?

Talk about virtually infinite hubris, Economists do NOT even know what they do NOT know in this instance!

Fri, 04/29/2011 - 14:57 | 1221639 Fred Hayek
Fred Hayek's picture

I AM NOT A STRAW MAN!

No, seriously, though.  To make is sound as though Hayek said the market would always be perfect is ridiculous.

Fri, 04/29/2011 - 15:04 | 1221673 Misean
Misean's picture

If the market were perfect, then the entrepeneur, a prominent actor in his theories, would be unnecessary.

Fri, 04/29/2011 - 14:57 | 1221656 Bazooka
Bazooka's picture

Soros needs to have a chat with Robert Prechter.

Fri, 04/29/2011 - 17:08 | 1222128 akak
akak's picture

Great --- a sociopath leading a blind man across the street.

Yeah, that's gonna end well.

Fri, 04/29/2011 - 15:00 | 1221658 Catullus
Catullus's picture

"As usual, the oligarch gets everything wrong, in this case, laughably wrong, in his Koch Address. (Thanks to Micah Haber)" -- Lew Rockwell

Enough said.

Fri, 04/29/2011 - 15:00 | 1221661 Diamond Jim
Diamond Jim's picture

Legal Eagle..no guy....evolution is atleast based on the fossil record, geology, and DNA / RNA, mitochondria...hard data. Economics is based on the whims of humanity, sort of like the science of global warming...I'll take the hard data over qualitative economic data always subject to revisions and manipulation.

Fri, 04/29/2011 - 15:14 | 1221722 disabledvet
disabledvet's picture

there's a reason why there's an economics school in "Austria."  How Mozart came out of there....

Fri, 04/29/2011 - 15:01 | 1221665 Bazooka
Bazooka's picture

How do you paste graph and images on this board?

Fri, 04/29/2011 - 15:16 | 1221729 Henry Chinaski
Henry Chinaski's picture

fight for the priveledge

Do NOT follow this link or you will be banned from the site!