Comments on: How protracted the risk aversion? http://www.dinocrat.com/archives/2008/04/26/how-protracted-the-risk-aversion-2/ Sat, 22 Nov 2008 02:40:09 +0000 http://wordpress.org/?v=2.5.1 By: gs http://www.dinocrat.com/archives/2008/04/26/how-protracted-the-risk-aversion-2/#comment-305014 gs Mon, 28 Apr 2008 22:24:46 +0000 http://www.dinocrat.com/archives/2008/04/26/how-protracted-the-risk-aversion-2/#comment-305014 Did Bernstein foresee the current mess, or is he speaking in hindsight? The 1993 <i>Capital Ideas</i> is the only book of his that I've read (some time ago). Iirc he strongly praised the new financial economics. The WSJ interview sounds a very different note. Since clearly the models described in <i>CI</i> have been used far beyond the most generous estimate of their domain of validity--have been invoked as pretexts for reckless and predatory behavior--, I wish the interviewer had pressed Bernstein about how well <i>CI</i> and the <a href="http://www.amazon.com/Capital-Ideas-Evolving-Peter-Bernstein/dp/0471731730/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1209420763&sr=8-1" rel="nofollow">sequel are standing the test of time. </a><a href="http://econclubny.org/files/Transcript_Volcker_April_2008.pdf#PDF" rel="nofollow">Paul Volcker</a>, <a href="http://www.nybooks.com/articles/21352" rel="nofollow">George Soros</a>, and <a href="http://www.reuters.com/article/businessNews/idUSN2847461420080428" rel="nofollow">Warren Buffett</a> don't seem too chipper either. Did Bernstein foresee the current mess, or is he speaking in hindsight? The 1993 Capital Ideas is the only book of his that I’ve read (some time ago). Iirc he strongly praised the new financial economics. The WSJ interview sounds a very different note. Since clearly the models described in CI have been used far beyond the most generous estimate of their domain of validity–have been invoked as pretexts for reckless and predatory behavior–, I wish the interviewer had pressed Bernstein about how well CI and the sequel are standing the test of time.

Paul Volcker, George Soros, and Warren Buffett don’t seem too chipper either.

]]> By: staghounds http://www.dinocrat.com/archives/2008/04/26/how-protracted-the-risk-aversion-2/#comment-304993 staghounds Mon, 28 Apr 2008 00:49:57 +0000 http://www.dinocrat.com/archives/2008/04/26/how-protracted-the-risk-aversion-2/#comment-304993 Mr. Bernstein is a very intelligent man, and he's very wrong. The free money is still flowing. Mr. Bernstein is a very intelligent man, and he’s very wrong. The free money is still flowing.

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