Friday, July 27, 2007

Bill Bonner, The Real Boom's Evil Twin

The Real Boom's Evil Twin
By Bill Bonner "In order to fully enjoy a crack up boom you have to understand that a crack up boom is not all it's cracked up to be. It is fundamentally a feature of monetary inflation, not of real economic growth. Easy come; easy go."

Today's Guest Essay:
The Collapse of Collapse
By Bill Bonner "The world has never been want for some kind of crisis that tests its inhabitants. War, depression, economic hardship - all still occur. What has changed in the last quarter century is the way we approach these crises. Bill Bonner explores how the current global mindset is allowing trouble to take a holiday. Read on…"

From time to time, a young man will come to see us. He'll say he wants to get in the business. So, we warn him. You don't know what trouble is, we say, until you become a financial analyst. When your recommendations don't work out, your readers will despise you. And when you do well, they'll be disappointed you didn't do better. Worse, you might begin to think you really know what you're talking about. And then you're completely useless - and a danger to everyone, especially yourself.

So take our advice, we tell them. Go into law or dentistry. But if you decide to go ahead…remember, you can always come to us for advice and help. And if things really go badly for you, we always keep a loaded pistol in our desk drawer; we hate to see a financial analyst suffer.

I was going to say earlier, it seems that there are a lot of Austrian school adherents who go into financial advising. (I don't know if Mr. Bonner is one of them.) Is the Austrian school generally underrepresented in economics departments?

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