When Economists Fail, or How I Learned to Stop Worrying and Love Stimulus

Don't worry, America -- Europe and the global economy will be just fine within a few years. This was the final message heard by a group of over three hundred financial professionals, delivered in a presentation by a chief economist of a very large and respected firm that shall go nameless here. But suffice it to say that given the daunting challenges facing Europe and the dire reality its nations are enduring, I was among many in the audience puzzled by the prediction. Now, it is worth mentioning that this bit of confusing optimism was purposefully the last item discussed, intended to leave the listeners with pleasant anticipation about the economic year 2012 -- "The Year of Positive Surprises," as the presentation was titled.  But it was nowhere near the beginning of the confusion. The production was riddled with curiosities, particularly in regard to inflation that could potentially result from past stimulus.  The speaker's contention, presumably shared among many...(Read Full Article)