image via ImgFlip featuring characters from The Office. If you know my political leanings, it should be no surprise that I generally oppose government mandates or bans. One reason is that they often provoke a backlash. Social psychologist Robert Cialdini’s Psychology of Persuasion details numerous examples where people’s logical thinking switches off in favor of… Continue reading Against Mandates, In Favor of Personal Responsibility
So, what is this blog all about? Quite simply, it will be aimed at exploring issues in as scientific a manner as possible to spark stimulating conversations and creating new connections and perhaps most importantly, to help me learn. Now, I know the subheader at the top of the page mentions policy commentary, and that… Continue reading What’s This Blog All About?
As I see it, the main cause was systemic, namely the securitization of mortgages (e.g., CDOs). This means mortgages being repackaged by lenders and resold to other investors who wanted the income from the monthly payments. This was first done in 1970 by the Government National Mortgage Association (GNMA or Ginnie Mae), but securitization didn’t really start taking… Continue reading The Causes of the Financial Crisis
It boils down to two main reasons: The problem is extremely difficult.The field of macroeconomics has been corrupted by politics. Regarding the first problem, it’s an issue of complexity. Just like molecules do not act like sums of atoms (and thus chemistry bears little resemblance to physics), humans do not act like sums of organs,… Continue reading Why Can’t Economics Accurately Predict the Timings of Recessions?