Well, ‘analyses’ stretches it a bit.

1.  Bob Lucas seems to be unable to follow his own investment advice.  But seriously, do you believe in EMH or not? Though I disagree with Brad about the usefulness of Black Scholes. It’s a tool.  Stick a big volatility curve on it and it can work for crashes too.

2.  Prescott thinks last Autumn had ‘virtually no consequences for the real economy.’  It was people ‘being scared by Obama’ that meant ‘it was depressed a bit that fourth quarter of last year’.  Yes, future economic historians will write about how the world economy got a bit depressed.

You see, the free market would have fixed it all just fine without those meddling government types.


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