Sociologists at U. of Cal-Berkeley break down how the Fed failed to see the financial crisis

[Dusty Bake Activate]

This is pretty interesting. Some people say macroeconomics is flawed because it's done part and parcel, or in a vacuum, without weaving together all the info for an accurate big picture. It seems that's what was going on in the Federal Open Markets Committee. These sociologist went through the meeting transcripts and conclude there was too much reliance on macroeconomic models, and that they weren't able to collate all the data and see the looming shytstorm of subprime mortgages, derivatives trading, the slumping housing market, etc.

If you're a Fed conspiracy theorist, please stay out of this thread.

http://sociology.berkeley.edu/sites...ve Failed to See the Crisis of 2008 v.2.6.pdf

 

[Crakface]

I think everyone saw, they were just caught in a prisoners dilemma. If they dont play the game, someone else will and will get rich so they mine as well play the game even though they know that if they all play the game eventually things will come tumbling down. Didnt help that AIG renigged on insurance obligations

 

[duckbutta]

How much did this research "cost"? Did they really need to do research just to find out that the feds just didn't care about the looming financial crises?

 

[Julius Skrrvin]

Thanks. Will read through tonight.