Friday, August 12, 2011

Bernanke Huge Mistakes to be Remembered - Future Economics Students

1. Never follow a leader, no matter how persuasive, into setting an after-election date for an economic event.

2. Never reverse the natural order of human events, e.g. create artificial negative interest rates when the human race would otherwise choose positive interest rates.

3. Never assume your personal and past ideas about yield curves have any merit for the human race at the present time.

4. Never artificially deflate or inflate currency. That is a bastardization that will most likely reverse on you; instead, remember that a currency is only valid when it correctly represents a value of goods and services.

5. Never be a protectionist in a fully internationally-interdependent world.

6. Never make the same mistake twice let alone three times. Proactively act, observe, maybe react, but at all costs do not do the same thing expecting different results.

7. Never live a life behind a glass wall and then dictate to the real world. The real world will most likely fail in that case.