3 ms·
In October 2008, he predicted that hundreds of hedge funds were on the verge of failure and that the government would have to close the markets for a week or tw
by iwwr 16y ago
In October 2008, he predicted that hundreds of hedge funds were on the verge of failure and that the government would have to close the markets for a week or two in the coming days to cope with the shock.
Most hedge funds would have been bankrupt if not for the bailouts, so he was technically correct.
- gwern 16y agoSo you're saying Nouriel's prophetic vision includes the entire economic world except the government? Wow, what a flaw. Almost as bad as kryptonite.
- Misha_B 16y agoIt actually makes sense. To predict the economy without government you need to predict trends and the behavior of many people. To predict the government moves you need to predict the whims and arbitrary actions of individuals, and do that according to their perceived political gains.
- JoachimSchipper 16y agoDo you have some data to back that up? (I'm honestly curious, didn't know this.)