Nassim Taleb, an author of whom I have not heard before, says that we should not listen to economists who failed to predict the financial crisis. The Atlantic has a sympathetic take on his remarks.
Well, I certainly agree that no one should pay attention to Paul Krugman or Thomas Friedman, and we should minimize the attention we pay to Timothy Geithner, but Taleb’s reason is bogus. A year ago, Robert Lucas rebutted this idea brilliantly.
Briefly, if there are people who can identify pricing bubbles, we cannot afford them. Certainly they wouldn’t be giving such information away for free.
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