Tuesday, July 18, 2017

ON ECONOMISTS

I think there is an element of truth in the old adage that economists are failed accountants bereft of an accountants personality.

I mean why would economists get their nickers in a twist just because the CPI flatlined in the second quarter coming in at 0.2% below market expectations.  

Consumer prices grew 1.7% between April and June on an annual basis, down from 2.2% in the first quarter of the year and below the forecasted 1.9%.    Translated that means interest rates are likely to remain at their historic lows into the foreseeable future.    Good for those on fixed incomes; good for borrowers; not so good for those with money to invest.

But for heavens sake ... we're taking about fractions of a percent.    Some will remember when the the CPI increased 44% in a quarter.    Then economists could really wax lyrical.

Of course with quantitative easing advocated by those on the dark side of the political divide as a measure to enhance growth those good old/bad old days might not just be a distant memory.



1 comment:

Adolf Fiinkensein said...

The other old adage, much older:-

Economists were invented to make weather forecasters look good.