Does anyone else think there are too many “Nobel Prize Winning Economists?” I mean, you can’t turn your head without seeing the opinion of one or another of them these days. Today it’s “Nobel Prize-winning economist Michael Spence,” who is pretty sure (but don’t quote him) that not every bank will pass the stress tests. Of course, Spence couldn’t possibly have been listening. Everyone knows that even if you fail, you pass.
Spence said in an interview with Bloomberg Television he would be “very surprised” if all the banks pass the exam, which he says will probably give a better picture of the banks’ health than earnings statements. He also said that “the data on lending and credit are still not that encouraging.”
Well, we just have to nod our heads when it comes to “earnings statements.”
The U.S. economy will also change in the next few years, Spence said. “There’s no question we’re going to have a new normal,” he said. “It’s going to have a higher savings rate, closer to a match with the investment rate. We’ll probably have a period where the cost of capital is higher because leverage is lower, and I think our growth will be somewhat diminished.”
Apparently, this is Nobel Prize Winning Insight here.
Spence Says Would Be Surprised If Every Bank Passed Stress Test [Bloomberg]
Spence, Stiglitz, and Krugman are very good arguments for making the Nobel posthumous.
No one else comment. @ 1 said all that needs to be said.
Someone needs to quote an AVN Award winning actress about how things have her on her knees, getting rough, etc.
We should just give all the banks a Certificate of Participation. After all, we don’t want to hurt any banker’s self esteem.
@1 FTW
@EP:
“Does anyone else think there are too many ‘Nobel Prize Winning Economists?’”
No.
Unless you are a Nobel Laureate yourself [which you are not], you have no qualifications which would entitle you to opine on the worthiness, or number, of Nobel Prize Laureates. Especially when said Laureates received their recognition on subject matters you have consistently displayed a stunning ignorance thereof.
Go wash the van, and after that, go back to your room. No TV for you this weekend.
re: @3′s AVN comment
These Nobel winners should be walking around w/ “Cock Wow!” stuck to their foreheads.
@6= Krugman
#1
Truer words have never been spoken.
I’ve noticed that there is no difference between my economic predictions, and these nobel prize winning economists’ economic predictions, other than there is more hot air associated with theirs, and their Ivy League buddies over at Capital Hill believe them over me.
You would figure that with a PhD from an Ivy League school they could develop a better forecast than a lowly finance major, but alas this is not the case.
Maybe economists should admit the truth that economics is not a science, and then people won’t care so much about their terribad predictions. Or they could all just be like Roubini and Taleb and just make the same prediction over and over again until they finally look intelligent because their prediction came true.
Spence looks like he could be Daniel Loeb’s father.
market down 289 beeps. This hog is going to get slaughtered… coming from a trader.
@8 – the stench of failure really gives him away doesn’t it?
I would like to guess the close please
@13 what’s stopping you?
One of N.N. Taleb’s better observations is that there shouln’t even BE a Nobel for economics.
Hey EP – go choke on a Nobel Prize winning dick.
Who does like Krugman?
wideclops
lobsterclops
The Nobel Prize for natural gas trading hasn’t been won in a long, long time. What’s up with that?
Guest @6/17/18 – nice little circle jerk you’ve got going there.
How about you pencildicks go pump each other at finance.yahoo.com?
-Not EP
To make matters worse, the guy’s a shill for PIMCO (see his new commentary on the PIMCO website; he’s apparently joined Greenspan as a consultant).
wideclops
@23 – Johnny wins it every year.
Not funny.
@23, the Nobel Prize pays out ~1 million USD. Given that, I’d say JA has won about 4,000 of em.
Michael Spence looks like prey
@27, here I was dicking around looking up Nobel Prize payouts (10 million SEK) and you beat me to the punch.
@6, people who win the Nobel Prize in economics are not Nobel laureates. As Taleb points out regularly, the Nobel Prize in economics was not bequeathed from the fortune of Alfred Nobel like the prizes in medicine, physics, chemistry, peace and literature. The prize was invented as a way to legitimize economics as a science in the late 1960s by the Swedish Bank and given “in memory of” Alfred Nobel so that people will get confused and prestige will attach. That’s why Taleb always refers to the prize by it’s actual name, the Swedish Bank Prize in Economics in Memory of Alfred Nobel. That’s one to grow on.
Robert Blake deserves to be behind bars, not out there speculating about these so-called stress tests.