Sunday, January 25, 2009

Being Optimistic about the Market

"Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched.

"But this crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous."

--President Barack Obama, Inauguration Address

I agree. But have we not been here before? Who will be "a watchful eye?" The practices of Bernie Madoff, for example, were investigated more than a few times before the scheme broke and no wrong doing was seemingly found.


wmmbb said...

There is a 2007 Nobel lecture by economist Leonid Hurwicz here about the theme, "Who will guard the guardians?".

Just a reminder, 26 January is Australia Day.

judith ellis said...

Thanks, tons, wmmbb. I will check it out for sure. But I would also have to agree with Buffett and Taleb on their distrust of economists in general.

Happy Australia Day! I was up rather late watching the Australian Open and heard about the upcoming festivities. I suppose you are rooting for Dovic. I'm sure you know who I'm rooting for, though Serena did not look so good against Azarenka before she had to retire. What a fine all around Azarenka has! I was really impressed with the 19 year old. Wow!

Watched the Blake/Tsonga match. While I was rooting for Blake, I must admit that I am incredibly impressed with the game of the latter. I loved it when he took out Nadal in the Australian Open last year. That's a rematch that I'd like to see, though Roddick is still alive. I think Federer is a great talent, but I have never been a big fan. Tsongas, I really like.