[ExI] Bitcoin

[Mirco Romanato]

Il 16/04/2013 18:40, Gordon ha scritto:

> I was in agreement with you, BillK (I think it was you) when you
> suggested in so many words to Mirco that the financial crisis of 2008
> poked some holes into modern economic theory.

In fact, modern MAINSTEAM economic theory is archaic it resemble more to
astrology than astronomy.

Mainstream economist not even think of men as rational/logic/efficient
economic actors in the market. They threat them, with their equations,
like billiard balls. So they think they will be able to manipulate them
in doing what they think right and good.

> The idea that economic
> actors should or can be considered at all times rational does not mesh
> well with the recent facts. This is also why I, like you, do not object
> to Eugen's use of the term "animal spirits".  

The problem their actions are subjectively rational, given the limited
ability to obtain informations, process them and act on the results.

When interest rates drop and loans cost less, it is not strange the
general population act rationally increasing the quantity of debts and
reducing the quantity of savings. Given their goals, time horizon,
upbringing, education, etc. they are acting rationally.

Not all people have the time, will and inclination to take a step back,
learn, criticize and understand the long term effects of a reduction of
interest rates under the level freely set by the market.

Not even many economists, because they just regurgitate memorized
talking point and notions.

Mirco