Nobel in Economics to three Americans trying to unravel 2008 financial crisis

Tuesday, October 15th 2013 - 00:05 UTC

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Eugene F. Fama, Robert J. Shiller and Lars Peter Hansen shared the 2013 Nobel Prize in Economic Sciences for at times conflicting research on how financial markets work and assets such as stocks are priced. The three economists, all Americans, “laid the foundation for the current understanding of asset prices,” the Royal Swedish Academy of Sciences, said in Stockholm. Read full article

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golfcronie
Apparently they have been asked by CFK to look at the finances of Argentina to see if default can be avoided. Good luck with that chaps.
Oct 15th, 2013 - 07:31 am - Link - Report abuse 0
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GeoffWard2
http://www.upworthy.com/congress-did-something-so-spectacularly-creepy-that-its-too-unbelievable-to-make-up?c=ufb1

Essential viewing for all Nobel Prize winners of Economics trying to sort out the mess in the USA.
Oct 15th, 2013 - 01:20 pm - Link - Report abuse 0
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ChrisR
2 GeoffWard2

That is terrible and must be the antithesis of what the American people voted for.

I still have faith in the old saying “put six economists in a room with a single topic and you will get at least TWELVE opinions”.

The main problems that economists and we have to consider is very simple in reality:

1) The public are sheep, they see a flock buying XYZ stock and immediately jump on it only to find out they spent all their money buying at the top of the cliff (the irrational exuberance). Sometimes the cliff is engineered by the fabled Investment Advisors who win (by claiming their fees) irrespective of their advice;

2) Economic Science is like Military Intelligence: too little and too late. The famous American investor Warren Buffet had it right on ‘The Weapons Of Mass Financial Destruction WMFD the CRIMINAL actions of Lehman Brothers in stuffing these ‘devices’ with KNOWN defaulters on their mortgages and then selling them on to stupid bastards like my own bank The Royal Bank of Scotland. THEN Lehmans BET AGAINST these devices and made even more money. The RBS got stuffed twice! It was these actions that caused the real meltdown.

How can economists have even half a chance at predicting the future with this sort of criminal action possibly skulking in the background?

3) Suggesting economics is a science is akin to suggesting we have found the proof to the existence of God. Nice to believe it but completely lacking evidence to support it;

4) There is only one rule that I adhere to; whenever I read that a bunch of economists are convinced that something is going to happen I do the opposite. It’s never failed me yet.
Oct 15th, 2013 - 03:36 pm - Link - Report abuse 0
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