The Echo Chamber Of Elite Economists: Often Wrong, Never In Doubt

The Echo Chamber of Elite Economists are often wrong, but never in doubt. In 2017, the whole landscape of the economy changed with the arrival of the new president. This new group is more different than the last one by a long shot. The election of Donald Trump marked a change as markets became optimistic about the future. This is the same kind of optimism that was around in 2008.

Key Takeaways:

  • Since the U.S. economic recovery from the 2008 financial crisis, institutional economists have continually over-estimated expectations for growth, inflation, consumer spending and capital expenditures.
  • After Donald Trump’s victory, U.S. markets began to anticipate, for the first time since the financial crisis, an escape hatch out of financial repression and regulatory oppression.
  • Although a new political regime is in store and it brings hope for a new path forward, the echo chamber reinforcing bad policy, fiscal and monetary, seems likely to persist.

“Within hours of Donald Trump’s victory, U.S. markets began to anticipate, for the first time since the financial crisis, an escape hatch out of financial repression and regulatory oppression.”

http://www.zerohedge.com/news/2017-03-22/echo-chamber-elite-economists-often-wrong-never-doubt

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