As the Guardian notes today, the Bank of England is facing calls to publish a full account of how it handled the financial crisis after the Treasury admitted it had made mistakes when the UK's banking system was on the brink of collapse.
It did, but the biggest mistake is ongoing. I well remember a person of senior rank telling me in 2009 "We have to revive Anglo-Saxon capitalism. It's the only model we've got". And that is still the problem. They still think it's the only model we've got and they're still trying to revive it.
The commentator has been rewarded with a move to the Cabinet Office. She should fit in very well there.
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In Robert Shiller’s paper ‘Human Behavior and the Efficiency of the Financial System’ from 1998, in which he takes apart rational expectations theory, he discusses ‘the Irrelevance of History’ (page 19) in which he says that:
“One particular kind of overconfidence that appears to be common is a tendency to believe that history is irrelevant, not a guide to the future, and that the future must be judged afresh now using intuitive weighing only of the special factors we see now. This kind of overconfidence discourages taking lessons from past statistics; indeed most financial market participants virtually never study historical data for correlations or other such statistics; they take their anchors instead from casual recent observations.”
The BBC likewise should have its own internal investigation on its dealing with the financial crisis.
[…] that seems an apposite moment to introduce a comment made on the blog this morning by ‘npt3′ that said: The BBC likewise should have its own internal investigation on its dealing with the […]