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Posted by on Feb 25, 2010 in Economy, In The News, Markets, TG Roundup

Unexpectedly a Lot of “Unexpected” News

If you are following a lot of news on the economy lately, you would have read headlines saying something or other got “unexpectedly” worse. Some headlines this week:

  • Jobless claims unexpectedly rose last week (today)
  • New home sales unexpectedly plunged in January (earlier this week)
  • Consumer confidence unexpectedly plunges to a 43-year low (yesterday)
  • Durable goods orders dropped unexpectedly in January (today)
  • German business confidence unexpectedly declines

When I searched Google with “unexpectedly” it produced 14,000 hits. Enough? Ah those economists!!! Do you have tough time deciding who should be blamed for all the financial mess? Shall we blame the Wall Street for peddling toxic garbage as products to the gullible and masses? Or, the “economists” for selling you an economic utopia under phony and unrealistic expectations?

The choice is simple. Wall Street. They know what they are doing. Other than using some fancy English to spew some gibberish, the economists know jack.

Always remember my tag line, “the real world is a special case for the economists!

2 Comments

  1. wonderful. Waiting for armageddon. Thanks for sharing mastaru.

    • Some others in the blogosphere have noticed this as well:
      http://dailycapitalist.com/2010/02/25/expect-the-unexpected/ says:
      ——
      Stunned!!!

      What most economists do is read all the reports of the other economists, get a feel if the trend is positive or negative, and then extrapolate last month’s data into a prediction for the future. As I said in the article:

      Economists like these operate on historical data. The idea is that by looking at the past you can predict the future. They failed to look at what was happening right in front of their eyes. They failed to see that massive money pumping by the Fed created a classic boom in housing that went bust when money supply declined.

      If they are right they are just lucky. If they are wrong, they are unlucky.