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View Diary: Morning Feature: Animal Spirits, Part I - Irrational Economic Actors (72 comments)

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  •  Obama and Biden (6+ / 0-)

    are saying 'we underestimated how bad the economy is' and 'we have received mis-information' about the economy.  The 'facts', they claim, were not presented to them therefore they have acted on false information which have led them to make not the correct decisions.  Meanwhile, the banks, etc. who have been on the receiving end of the bail outs, have taken advantage of every loop hole available, and some not so apparently available, to run around the Obama structures.  

    "Animal Spirits" seems to be a little simplistic to explain economics, but the current 'story' pretty much is following their scenario.

    •  Among their arguments ... (5+ / 0-)

      ... which we'll get to later in the week, is that both FDR and President Obama - while willing to apply Keynesian theory - weren't bold enough because Keynes theories were watered down by ignoring (or ignorance of) Keynes' arguments about animal spirits.  Keynes' theories are easy to attack if you assume people are Rational Economic Actors.  But when you assume people act on intuitive, informal reasoning rather than formal, quantitative analysis ... Keynes' theories are more robust and in fact demand bolder government action than FDR could get done in the 1930s and than President Obama has done thus far.

      Good morning! ::hugggggggggs::

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