Tuesday, December 30, 2008

Causes of a Recession

As I work on my new E-book 101 Reasons to Love a Recession and my new website Love a Recession: How to Prosper During an Economic Downturn, I have been contemplating and adding my ideas for the Causes of a Recession .
Of course, explaining the recession in simple terms to the idiots of this world - namely most of the economists and financial analysts of this world who didn't think a recession was even possible - in basic understandable terms is not easy.
How could so many Yale- and Harvard-eduacted economists and financial analysts be so stupid when it comes to the predicting the recession? Most didn't think it was likely to happen - or even possible.
This excerpt from Report on Business magazine explains one of the causes of the economic recession gripping us today:

"In the classic 1972 book Groupthink, Yale psychology professor Irving Janis showed just how a panel of experts can come to a consensus that is wildly incorrect. Experts worry about their status in the community. They fear veering too far away from the others, because if they do, they risk becoming irrelevant. Even the most well-informed or cynical experts can find themselves censoring their viewpoints and even actively changing their deeply held beliefs in order to remain in line with what they perceive to be the beliefs of the group as a whole."

Little wonder that these same experts called people who were predicting this serious economic downturn - such as Peter Grandich - kooks. Well results don't lie! The recession has proven that the mainstream economists and financial analysts were the kooks. Now these same kooks will come up with some more interesting voodoo theories about what caused the recession - of course, ignoring the fact that many of their models were, in fact, the cause of the present recession.

No comments:

Post a Comment