Wednesday, July 22, 2009


Brad DeLong sums it up nicely.

For those of us pondering an imminent dollar collapse due to our creditors who are concerned with the projected unsustainable debt per GDP in the future, it's hard to find any evidence the market is actually worried about it. So, if you believe the market is all-knowing and has perfect foresight then you have to say "there is no storm coming, no danger at all." So, I feel like Chicken Little saying "the sky is falling, the sky is falling!"

However, if you have doubts about the efficiency and foresight of the market, then you basically wonder if you're the only one who can see the storm coming--you're Noah and not Chicken Little. You remember that when Rome was sacked much of the city was in the coliseum choosing to be distracted...

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