Economists and the Magic Walrus

Economists believe in the Magic Walrus who always preserves liquidity, and knows all prices at all times. Here are the Believers in the Magic Walrus, all of them culprits in this downturn and in the 2008 downturn:

We have to give our current downturn a name. Its not yet a recession, but we can go back through the 12 Trillion borrowed at high interest rates and identify the culprits. Here is the list. Bernanke appear twice naturally. And we should add Summers.

• R. Glenn Hubbard
• N. Gregory Mankiw
• Harvey S. Rosen
• Ben S. Bernanke
• Edward P. Lazear
• Christina D. Romer And Summer and Bernanke.

Now as far as poor people getting insurance what do we know? The public sector pensions were first in line, so those bootleggers get a huge batch of goodies at high interest rates. Then government has $560 billion in interest costs, so we have to wait, then if we survive the next recession caused by the folks above, maybe the poor can get a drop.

What is the fraud everyone of these bozos use?
The Magic Walrus Fraud.
"Oh", they say," You will get yours later because the Magic Walrus will save some liquidity", except when the time comes, Jack Lew, Secretary of treasury, looks and find there is no liquidity left. So then the bootleggers claim, no problem, DC can borrow up some liquidity, and so the DC Bapbtists start the Kanosian Fraud yet again and we have a downturn. Wash rinse and repeat, the Magic Walrus to the rescue.

And the sad part is that we teach thousands of undergraduates to believe in the Magic Walrus, to this day; and we call it education. What really happens is that the probability distribution of actions has to match the probability distribution of existence. The Magic Walrus cannot do that.