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I suspect it is the usual debt phobia at work, The economy is "damaged" because too much of it is sustained by debt and houses, per se, are not considered to increase productive capacity - beyond the once off and temporary increase required to actually build them. No mention of multiplier effects or the importance of having people actually live where the jobs are. One of the articles of faith of mainstream "serious" discussion of the economy in the UK appears to be: "Debt is too high" together with "The EU is damaging Britain" and its all the fault of the Unions/Government Red tape/high taxes - take your pick.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Aug 6th, 2013 at 11:16:06 AM EST
Apparently the remarkable events of 2008 were so unlikely some bankers were labelling them as '25 sigma' events.

See e.g. here.

So very, very unlikely, it's astounding they happened at all.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Aug 6th, 2013 at 12:30:14 PM EST
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What is even less likely, but shockingly true, is that similar events happened every time we allowed the Finance Sector to operate in such an unregulated manner and that as the US rolled back regulations aggressively beginning in the 1970's, it experienced a series of crises.

A 25 sigma event that is a repeatable economic experiment and  has warning tremors! That's so unlikely I reckon it surely must quality for an extra sigma.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Fri Aug 9th, 2013 at 12:26:28 PM EST
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