“Politics is the art of looking for trouble, finding it whether it exists or not, diagnosing it incorrectly, and applying the wrong remedy.” 1Ernest Benn

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1. Ernest Benn

Another Trillion

A trillion here, a trillion there, pretty soon you’re talking about real money. 1Paraphrased from the original Everett Dirksen quote

Footnotes   [ + ]

1. Paraphrased from the original Everett Dirksen quote

Theory of Rational Expectation

OK, so Congress passed the bailout (and about $150 billion of pork) and the stock market continues to tank. Could it be that fear, not tight credit, is fueling the market? Did it help that both presidential candidates said that this is the worst financial crisis since the Great Depression? Do the cries of the media help the situation?

The Theory of Rational Expectation in economics says that the economy will follow the expectations of the population. Are we expecting the economy to tank?