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Tuesday, December 23, 2008

Surprise, economists are wrong

"The figures were worse than economists had forecast..."

What's the hottest market now that housing has collapsed? Betting against classically bent economists that keep seeing rays of sunshine in a darkened room.

I don't want to suggest we are doomed to years of recession, but I do think the econ profession has this nasty tendency, likely due to their love of perfectly adjusting markets, for being overly optimistic.

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