Moses Abramovitz was a giant of 20th Century macroeconomic research and the advancement of the economics profession. He is in my first book Reflections on the Great Depression. You can learn more about him here http://en.wikipedia.org/wiki/Moses_Abramovitz . Read this interchange I had with him and note the added emphasis I included:
Me: Could another Great Depression happen?
Abramovitz : My own sense of the matter is that the severity and length of the Great Depression of the 1930s could not happen again in the economy we know today. But serious reversals, lesser in magnitude, more transcient than the Great Depression, I certainly think are possible. And who can forecast how the underlying features of the economy will change over time? It may make us more vulnerable to great disasters we can't evnvision now.
I don't want to rattle anyone but would the subprime garbage we built our financial system on qualify?
Me: Could another Great Depression happen?
Abramovitz : My own sense of the matter is that the severity and length of the Great Depression of the 1930s could not happen again in the economy we know today. But serious reversals, lesser in magnitude, more transcient than the Great Depression, I certainly think are possible. And who can forecast how the underlying features of the economy will change over time? It may make us more vulnerable to great disasters we can't evnvision now.
I don't want to rattle anyone but would the subprime garbage we built our financial system on qualify?
If you want to read more about historical credit cycles and trends, then here is the whole interview with the Master...Moses Abramovitz http://www.funnyeconomist.com/ABRAM.finalsq.pdf. Or you could call Edward Elgar at 413-584-5551 and order the book. That's it in the upper right. Imagine that?
No comments:
Post a Comment