The Magic Lever
By DAVID BROOKS
NYT
The world economy is a complex, unknowable organism. Most of us try to diversify our investments and balance risk and security to protect against the unexpected.
But a few years ago a group of bankers thought they had the magic tool to help them master financial trends and predict the future. Sophisticated risk assessment models would enable them to rewrite the rules and make more money.
Their arrogance was soon exposed. Along came the financial crisis.
In the middle of the crisis another group emerged, believing it had the magic lever to alter the economy’s trajectory. Democrats argued that through gigantic deficit spending, they could bring unemployment rates down sharply and produce a “summer of recovery.”
(More here.)
NYT
The world economy is a complex, unknowable organism. Most of us try to diversify our investments and balance risk and security to protect against the unexpected.
But a few years ago a group of bankers thought they had the magic tool to help them master financial trends and predict the future. Sophisticated risk assessment models would enable them to rewrite the rules and make more money.
Their arrogance was soon exposed. Along came the financial crisis.
In the middle of the crisis another group emerged, believing it had the magic lever to alter the economy’s trajectory. Democrats argued that through gigantic deficit spending, they could bring unemployment rates down sharply and produce a “summer of recovery.”
(More here.)
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