Thursday, May 22, 2008
Dodgy economics dressed up as accurate models
This looks like a case of two economists being wise after the event - suddenly switching their forecast to price falls, though not by very much. These two produced a model which was suspiciously close to the actual growth in house prices. But they talk as much waffle as the VIs: eg "Systematic and comprehensive models are needed to distinguish fact from fiction in claims such as those made at the time by the OECD and IMF"; "pent-up demand...";"fundamentals of strong growth in real income". Even academics resort to bullsh1t.