Home > Markets > Professor John Taylor …and his views on the financial crisis

Professor John Taylor …and his views on the financial crisis

January 14, 2009

No Artificial Bubbles Allowed

No Artificial Bubbles Allowed

Rocky Humbert hails from a rusty old mill town — a town still best known for its brewery that scorns artificial carbonation. As a sixth grader, Rocky’s art teacher sent him to the principal’s office for talking during class (“pass the crayons, please”). This experience left Rocky permanently distrustful of Government and Authority Figures.

Rocky wants to share a new academic paper written by Professor John Taylor at Stanford University. It’s the first paper that Rocky has seen which postulates a unified theory of WHY the financial crisis developed, and why it accelerated during the last several months. It’s consistent with Rocky’s view that Art Teachers and Treasury Secretaries make lousy guests at family barbeques.

Click on:

  1. Mark T. Market
    January 14, 2009 at 7:05 pm

    I recently featured Taleb speaking out in frustration against the economic and banking establishment, also joined by his mentor: Benoit Mandelbrot. They blame the present belief in naive risk models for failing to anticipate the coming crisis.

    Their statements about rapid crashes have striking correspondence with Jared Diamond’s observations about societal collapse.

  2. DanG
    January 14, 2009 at 7:40 pm

    An excellent article – I passed it along to my colleagues at work. It provides convincing reasons for the current financial crisis.

  3. Felix W.
    January 17, 2009 at 3:50 pm

    The article illustrates a very intriguing perspective of today’s economic times. Based on your personal opinions, where would you advise to invest capital in these times or purchase assets?

  4. January 17, 2009 at 4:52 pm

    Rocky made his fortunes as a short-term speculator and as a long-term investor. He does not provide investment advice and is cynical about the motives of those who do.

    However, for an investor who is willing to turn off his television for ten years AND join the thousands of canceled NY Times subscribers, Rocky shares Warren Buffett’s perspective:

    http://www.nytimes.com/2008/10/17/opinion/17buffett.html?scp=1&sq=buffett%20buy%20american&st=cse

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