An additional difference between Common Sense Economics and Ivy League economics is that we observe what is actually happening in the world outside of numbers. Again, numbers are great for building bridges and rocket ships. In studying economics which is based on human behavior, numbers are of very little help. Of course numbers are the best friends of economists who are paid to lie to make a living. Only they know where the numbers come from and they can count on everyone else to believe them based on their credentials. Hundreds of years pass without a government economist being right about anything but Americans still believe them. This process will cost you everything you have and everything you have any chance of getting unless you join the invisible three percent who think regularly. We would be glad to have you. The herd mentality is only the default mode. Anyone can make the switch.
In the past week or so, I have noticed that Yahoo news is starting to publish some truthful articles concerning the stock market and the economy. Here is one of them.
Until this time, all news outlets have published only articles that are 100% supportive of government, the financial sector and corporate interests. The news media will tell any lie that augments their bottom line up to the point where there is a chance they will look stupid.
We have reached that point so expect other news organization to start giving readers a teaspoon taste of the truth. This way when the crash and misery come, they will have a place to point and say, “See we were on top of at all along. No one here is surprised.