jump to navigation

Sunday Independent Stupid Statement of the Week July 28, 2013

Posted by Garibaldy in Sunday Independent Stupid Statement of the Week.
trackback

This economist always believed that if only government would stop interfering in the market with dysfunctional pro-cyclical regulation and overtaxation, house price levels can and should settle back to 2004 levels, ie levels that are prudently and sensibly located between the extreme highs of 2006 and current dysfunctional lows.

Marc Coleman. What can you say?

Comments»

1. EWI - July 28, 2013

pro-cyclical regulation

WTF does this even mean? Can someone explain in non-gibberish please…?

Like

LeftAtTheCross - July 28, 2013

It means take two numbers at random and unrelated to other economic factors such as unemployment, wages, inflation, tax levels, emigration, add them together and divide by two, and abrakebabra that’s the correct market price for housing. But don’t tell anyone the secret formula, you need to do a €12k MBA in the Smurfitt business school to learn the tricks of the trade.

Like

chekov - July 28, 2013

It’s based on the assumption that price fluctuations are a consequence of a ‘business cycle’ – a rather mysterious thing that is mostly just a theoretical band-aid which says “even though prices are falling and this contradicts all of our theoretical models, it’s just a normal cycle thing, don’t worry people, capitalism will correct itself’

Pro-cyclical regulation is regulation that exaggerates the magnitude of the fluctuations in the cycle – it makes prices go up more when they are already going up and down more when they are already falling.

Marc Coleman is remarkable for a couple of reasons. Firstly, he doesn’t seem to realise that not everybody is as thick as he is and some people actually understand what an absolute fool he makes of himself regularly (his defence of ‘the best is yet to come’ is a world class case of self-humiliation). I suspect that he actually believes himself to be both bright and knowledgeable about economics. Secondly, he is probably the economics commentator who is given the most space in the Irish media, despite the fact that he is so ill-informed and dim-witted that the world cringes every time he opens his mouth.

Like

EWI - July 28, 2013

Thanks for that. I had heard of the so-called ‘business cycle’ before, but “pro-cyclical regulation” was a new one.

And I suspect his continued space owes a lot to the ever-expanding reach of Denis O’Brien throughout the Irish media landscape.

Like

doctorfive - July 28, 2013

zǒu gǒu

Like

sonofstan - July 29, 2013

Marc Coleman is remarkable for a couple of reasons. Firstly, he doesn’t seem to realise that not everybody is as thick as he is and some people actually understand what an absolute fool he makes of himself regularly (his defence of ‘the best is yet to come’ is a world class case of self-humiliation). I suspect that he actually believes himself to be both bright and knowledgeable about economics. Secondly, he is probably the economics commentator who is given the most space in the Irish media, despite the fact that he is so ill-informed and dim-witted that the world cringes every time he opens his mouth.

I was struck by this piece from an NYTimes piece which has been criticised for ‘psychologising’ the crisis – I think it’s an accurate summary of how the sociology of the Irish ruling class works. If you’re on the inside in Ireland, then there is no outer darkness to which you can be cast, however heinous your crime (or however stupid your book)

Our ruling class — including many of the politicians, bankers and property developers who wrecked the economy — is a tiny community, interwoven by friendship, marriages, education, sports and financial transactions to a degree that would be unimaginable in a bigger country. That interweaving has created a safety net that won’t let any of the ruling elite fall. If you’re a banker and your golf buddy’s kid wants to be a banker, then it doesn’t matter if the kid is an idiot, or if he kills cats for kicks: you’ll take him on, and you’ll keep him on.

For many of these people, action and consequence don’t apply; their lives are mapped out from birth, and nothing they do will alter that map.

http://www.nytimes.com/2013/07/28/opinion/sunday/the-psychology-of-an-irish-meltdown.html?_r=0

Like

2. cross-eyed cow - July 28, 2013

> What can you say?

You could ask the doctor to increase the medication?

Like

doctorfive - July 28, 2013

few humane cures for that level of stubbornness I am afraid

Like

3. Bob Smiles - July 28, 2013

Brendan o connors ‘bleeding the coping classes, feeding the welfare classes’ looks promising

Like

Garibaldy - July 28, 2013

Indeed. I thought though the stupidity of the suggestion that 2004 prices were prudent and sensible stood out on its own.

Like

doctorfive - July 28, 2013

what year did Marc buy his house 🙂

Like

chekov - July 30, 2013

That is the most funny bit alright. Based on the economic principle that, absent regulation, prices will be not so low and not so high, but sort of high. Relationship to income, supply and demand, ideology, etc, etc, are not relevant, what’s important is that they seem sort of about right to me.

Like

4. Henry Silke - July 28, 2013

Marc Coleman, the man who just keeps giving, I might have to give him a special thank you mention in my thesis (on ideology in the print media).

Like

Starkadder - July 29, 2013

Following Hitchens and Bono, someone should write
a “Verso Counterblasts” book about Coleman.

Like

5. Garibaldy - July 29, 2013

New DUP finance minister Simon Hamilton talking about the squeezed middle. He must read the Sindo.

Like


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: