Wandering Thoughts

October 11, 2008

The Correct Response

Filed under: Ramblings and Musings — terence @ 7:11 pm

Back when I began loosing sleep over the financial crisis, Matt Nolan of The Visible Hand in Economics remained relatively sanguine. This was kindof calming: after all he’s the economist and my only real qualification is as a worrier.

These days he appears to have changed his tune. Which won’t help me sleep, but the spoof Economist cover will at least give me a few dark chuckles as I lie awake.



  1. Hi Terence,

    Note that I still agree with everything I said then. The problem is that the risky assets haven’t been declared, and people have stopped loaning to each other.

    I also still think this is a hell of a lot worse for the US than for us in NZ – although the cost of credit is now becoming especially restrictive :(

    Comment by Matt Nolan — October 13, 2008 @ 8:56 am

  2. Hey there Matt nice to hear from you,

    I agree that the problem (well part of the problem now; the other part is panic) is the drying up of interbank lending. The thing is the horse has bolted now and so it is now going to take a lot more than information to coax it back into the stable.

    And I agree that the financial crisis has been much worse for the US than NZ. But, as you say, even with our banks being soundish, the credit crunch will hurt. As will the more generalised economic downturn.

    Here’s hopin it ain’t too bad. I definitely enjoyed the cartoon though – thanks :)

    Comment by terence — October 13, 2008 @ 6:59 pm

  3. […] Financial Crisis Humour Reading Rod Oram and Paul Krugman is only upping my anxiety levels. Humour […]

    Pingback by More Financial Crisis Humour « Wandering Thoughts — December 18, 2008 @ 6:11 pm

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