Monday, 27 July 2009

Expert opinions

I see that some "experts" have written to the Queen after she had wondered, "why nobody had predicted the credit crunch":
The letter ends: "In summary the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole."
But plenty of bright people had understood the risks and many of their followers had structured our investments accordingly.

The real question is this: Is it significant that the LSE experts are financed by the taxpayer and have a vested interest in the system that failed whereas the Mises chaps aren't and don't?

(Incidentally, I wonder which brand of expert will be appearing at George Watson's.)

No comments: