Richmond Fed Economists Love Starting Sh*t
Apparently I missed a little drama while I was out of town indulging in whatever it was I'd gotten myself into in lovely New York but I'm back and just trying to catch up.
Did I miss a Richmond Fed economist telling bloggers they're idiots? Ask Zero Hedge:
The full report from Kartik Athreya is here. [Link is broken, perhaps someone felt compelled to take it down] Some of the more offending comments:
Writers who have not taken a year of PhD coursework in a decent economics department (and passed their PhD qualifying exams), cannot meaningfully advance the discussion on economic policy.
So we have to go to school for two years to be able to write about the issues of the day. That would exclude me and a lot of others. The fact that I worked on Walls street for 30 years does not qualify me to say a word.
The response of the untrained to the crisis has been even more startling. I listen to Elizabeth Warren on the radio fearlessly speculating about the nature of credit market dysfunction, and so on.
Taking on Elizabeth Warren is a big mistake Mr. Arthreya. You will regret this choice of words.
The real issue is that there is extremely low likelihood that the speculations of the untrained, on a topic almost pathologically riddled by dynamic considerations and feedback effects, will offer anything new. Moreover, there is a substantial likelihood that it will instead offer something incoherent or misleading.
Everything that comes from the Federal Reserve is incoherent and misleading.
The sophomoric musings of auto-didact or non-didact bloggers or writers is instructive. For those who want to really know what the best that economics has to offer is, you must look here.
The only people you should listen to is Federal Reserve economists? I take a different view. The last people you should trust in this matter is FRB economists.
Listen, I know plenty of economists who have their little PhD heads shoved so far up their asses they wouldn't know supply from demand (take our esteemed Federal Reserve Chairman for example, who stated in 2006 that there was no problem in housing and everything was under control) and some are so blindly macro that they can't even spot turmoil directly in front of their faces (I won't name names but he may hold a high up position at the same bank as our buddy Athreya). Does a piece of paper automatically mean one is qualified? Is there nothing to be said for being self-taught and absorbing the curriculum of life?
Man. This dude must be drowning in hate mail right about now. Just a guess.