carey_jim

The Flawed Housing Bill: How We Will Pay for It

The problem, as I see it, is twofold.

The second problem is derived from the first which is the pervasive mistake of viewing economics as a "hard" science which can provide mathematical laws that govern economic activity the same way that mathematical laws govern physical systems and the process of constructing electronic devices, mechanical devices and other physical structures, which we call engineering.

Economics is closer to psychology, sociology, politics and ultimately to ethics and philosophy than to engineering.

The problem that stems from this mistake is the problem of mistaking ideology and rhetoric (propaganda, advertising and sometimes theology) for rational decision making.

From an American perspective it is clear the Soviet economics was largely delusional but it is not easy to see a similar process at work in American university economics departments and in “think” tanks.

Our economic and financial investment decisions should be based on reason and experience and not economic theology: We need to listen to economists AND political scientists, historians and philosophers.

The Soviet Union collapsed because academic Marxism was nothing more than economic theology. Our own system might collapse under a similar delusion.

So, yes, you are right: Keep your financial powder dry (if you can) until the crisis passes.