The problem is that 99% of economists are wrong. Dean Baker:
“Economists almost never forecast recessions. I happened to
get a copy of the “Blue Chip” top 50 forecasters rojections for 2001, dated Sept. 2000. Not one forecaster in this group projected a recession. In fact,the lowest growth projected by any of them for 2001 was 2.4 percent. Keep in mind, the stock market had already begun to unravel at that point, so it shouldn’t have been too hard to imagine that there would be some economic impact.” – Dean Baker
Baker, Roubini, and a few others are more accurate. Even Thornberg has good data, but reaches poor conclusions; he tells people that prices in So CA will flatten for many years until wages catch up so nobody should sell their home! Nobody should cash out and rent! I am familiar with his work, and his conclusions.
Let the sheeple follow the advice of Thornberg, and hold on to their homes.
Economists cannot create a bubble, because they are sheeple too. They just follow the bubble like everyone else.
We have few competent economists. The people who are smart and insightful and courageous enough to go against trends are heroes. Only a few economists are heros; Most are sheeple.
So to answer your question, if a hero economist tells me where to put my money, I would do it. If Roubini said I should buy euros, I would do it. Because he knows MORE than I do on the current situation, so I believe he has a better vision of what will happen.
Someone like Alan Gin or Chris Thornberg, who can’t even see what is going on today, cannot be trusted to give advice. How can you give advice on a fiction reality?
I really need to become an economist. We need a good San Diego economist. We really do!
