Just like buying direct from the source cuts out the middleman, sticking to a proven financial model works (for instance, if one purchased bank checks from the check manufacturer instead of the bank, you get faster service and a quality product at half off).
Can politicians, policymakers and corporate executives trust finance economics experts? This is the million-dollar question. Or rather the multi-billion dollar question. Given the current recession, the legitimacy of many top analysts has been called into question. Some of this damaging slander is overstated, since there are a number of businesses with their own economists that seem to be faring just fine. Bank checks proved viable and business safety rating raised no eyebrows, not yet.
When the housing boom started to slow and home values started dipping slightly, behavioral economics experts thought it was a logical progression for the over-inflated market to bubble and pop. One thing no one saw coming was the crumpling of so many giant bank and financial institutions over just a few months of time.
One of the criticisms of finance economics and macro economics theories is that it never considers how the inner-workings of bank and financial institutions can impact the larger economy. "That's the view of microeconomics theorists," they scoff. In turn, micro-economists are looking at how financial institution decisions affect consumer spending and behavior, rather than scaling up.
Critics say behavioral microeconomics fails to provide large-scale evidence of how these small factors affect large economies and they fail to offer up new economic paradigms in place of the old flawed systems. Perhaps the trouble with finance economics is also the trouble with any sort of economic field of study; these different schools of thought refuse to consider others' ideas. There are financial and behavioral economics professors. There are micro and macro economics theorists. The truth lies somewhere in-between these disparate ideas about how large and small-scale economies function and what variables affect them the most.
Finance economics experts have a lot of work to do. Now that they've acknowledged the potential devastation that "bubbles" can cause in the market, they must figure out how to manage those risks and limit the scope of the damage. They must study how liquid markets can suddenly dry up and determine which policies or actions could keep cash flowing freely and purchasing power strong.
For instance, when the real estate bubble burst, which was long expected as a natural progression, many investors hastily pulled all their money out of the stock market, which caused widespread panic and a domino effect of other investors who did the same. The question economists must ask now is how can they restore consumer confidence and keep it?
Pure capitalism suggests no controls and let the market filter out inefficiencies. Government controls and manipulations negate the free market system thus lower the efficiency of a proven economic model.
Can politicians, policymakers and corporate executives trust finance economics experts? This is the million-dollar question. Or rather the multi-billion dollar question. Given the current recession, the legitimacy of many top analysts has been called into question. Some of this damaging slander is overstated, since there are a number of businesses with their own economists that seem to be faring just fine. Bank checks proved viable and business safety rating raised no eyebrows, not yet.
When the housing boom started to slow and home values started dipping slightly, behavioral economics experts thought it was a logical progression for the over-inflated market to bubble and pop. One thing no one saw coming was the crumpling of so many giant bank and financial institutions over just a few months of time.
One of the criticisms of finance economics and macro economics theories is that it never considers how the inner-workings of bank and financial institutions can impact the larger economy. "That's the view of microeconomics theorists," they scoff. In turn, micro-economists are looking at how financial institution decisions affect consumer spending and behavior, rather than scaling up.
Critics say behavioral microeconomics fails to provide large-scale evidence of how these small factors affect large economies and they fail to offer up new economic paradigms in place of the old flawed systems. Perhaps the trouble with finance economics is also the trouble with any sort of economic field of study; these different schools of thought refuse to consider others' ideas. There are financial and behavioral economics professors. There are micro and macro economics theorists. The truth lies somewhere in-between these disparate ideas about how large and small-scale economies function and what variables affect them the most.
Finance economics experts have a lot of work to do. Now that they've acknowledged the potential devastation that "bubbles" can cause in the market, they must figure out how to manage those risks and limit the scope of the damage. They must study how liquid markets can suddenly dry up and determine which policies or actions could keep cash flowing freely and purchasing power strong.
For instance, when the real estate bubble burst, which was long expected as a natural progression, many investors hastily pulled all their money out of the stock market, which caused widespread panic and a domino effect of other investors who did the same. The question economists must ask now is how can they restore consumer confidence and keep it?
Pure capitalism suggests no controls and let the market filter out inefficiencies. Government controls and manipulations negate the free market system thus lower the efficiency of a proven economic model.
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