We need more diavlogs about the economy
So, I'm looking at the list of the last ten diavlogs, and none of them is devoted to the economy. But when I read the op-eds in today's NYT, all of them are devoted to the economy. I have already expressed my dissatisfaction with the discussion of the economic crisis that took place between Kling and someone else, and that discussion occurred over two weeks ago. Why can't we get Roubini or someone from his staff to come on and talk to Fama, or someone like him, about (i) what is going on, and (ii) what needs to be done about (i)? Aren't there people with specific knowledge about the big banks and the derivatives markets that could inform us?
One line of commentary suggests that the solution should be bottom-up, that there would be a way to make good the shortfall between values assumed in the US residential mortgage market and current market values. Once that problem is "solved," the derivatives problem is solved. But I have the sense that this cannot be right. If it were that simple, the "baseline" problem would have been solved by now.
I do know that I come away from discussions of the crisis with a profound sense of dissatisfaction, as though people are concealing from me essential information. I saw an interview of a NYT financial reporter by John Stewart, and the financial reporter, whose name was something like Joe Nocera, seemed to know very little. I heard Terry Gross talking to Gretchen Morgenstern of the NYT, and Morgenstern seemed to know about as much as I do, which is not very much at all. We had Robert Wright talking to Robert Schiller, and all Schiller had to say about our crisis was that there was a "counterparty problem" in the derivatives market which could ultimately be prevented in the future by having exchanges for this market. Then we had the Kling - Russell (?) diavlog a few weeks ago.
I am a big fan of this site, but there is a major lacuna here that needs to be filled. What happened to that lady who was on once who was a "consultant" but who seemed to have very good institutional knowledge about the banks, financial flows, etc? What happened to that former investment banker who is now a professor of psychology at Columbia? Those people were excellent.
The world is falling apart, and we're being fed the usual pedestrian political analysis. It's not good enough.
Last edited by ledocs; 03-23-2009 at 06:56 AM..