Someone once said if you laid all economists end to end you'd never reach a conclusion. I fear they were right.
Henry Egas and co are simply wriggling around trying to find an acceptable reason to maintain 'status quo economics' theory and power.
What is needed is a new paradigm way of doing business...one that takes into account the darker side of human nature and keeps it in equilibrium.
Business alone can't be trusted and aggregation leave too many victims with too few winners. Bold thinking people Bold thinking.

"It is crucial to recognise the severe limitations that afflict our ability to forecast and centrally manage the economy."

Doh!

Man has never been able to see the fuure buddy. So why would we think anyone can now. Get John Edwards if you want to know such things as he can ask the dead what's going to happen can't he?

Just beware anyone who says they know anything about what to invest in. Be it stock market, casino, racing or even politics. They don't know a thing until the results are in.

End of story.

Of course the really bold economists of our times were the Chicago Boyz inspired by Hayek and Friedman.

The devastating results of their cultural wrecking project is described in The Shock Doctrine by Naomi Klein. And their ruthless SHOCK and AWE methods too.

Plus their exercise in changing the laws, without any democratic process, to expidate their PLUNDERINGS. And to thus "legally" obstruct any efforts to dismantle their new BRUTOPIAS.

Plus the consequences of their follies are also criticised in the two other essays on todays forum.

The de-regulation of the financial system was/is just a symptom of the fact that there is no system in place to regulate anything in our now totally inter-connected global "civilization".

And it could be said that the Bushites systematically dismantled what systems that did exist. Systems that had been put in place by patient and systematic multi-lateral negotiations since the end of world war two.

And to think that some kind of necessary planetary order can be created by the operation of the untramelled "free" market is a complete delusion.

Hence we have the situation described in this reference.

http://www.ispeace723.org/gcfprinciples2.html

Many of our economist simply guess just like those on the climate change gravy train. The boom was not predicted, the bust was not predicted and now they want to tell us what is going to happen in the future. It would be very funny if so many people did not take them to seriously.

Surely, in an unpredictable world, there are two maxims that are sure stars to steer by:

Firstly, the famous quote from Sam Warner:

"Don't make predictions, particularly about the future."

Secondly, the famous quote from Mr. Micawber:

"Annual income £20, annual expenditure £19/19/6, result happiness;

Annual income £20, annual expenditure £20/0/6, result misery."

Anyone interested in the whole story should read the Asia Times, as, unlike the whole western media, which reports entirely from the viewpoint of the debtor, the Asia Times reports from the viewpoint of the creditor. They are already wondering if Australia will remain a good country in which to invest.

The other thing that interests me, is that all these western governments who propose to borrow further enormous sums from foreigners, never seem to consider whether the foreigners will be prepared to lend to them. If the foreigners choose not to lend, there is absolutely nothing they can do about it, as they cannot print foreign exchange.

Henry Ergas is wise to urge caution on these proposals.

I note that while some of the economists signing the letter have distinguished records in other areas of public service, none have any impressive track record in macroeconomic forecasting. Eslake, for example, who is paid by the ANZ Bank to make forecasts, wrote in April 2007: "Corporate profits and the share market are at record highs –but the market isn’t ‘over-valued’"

The All Ords was over 6100 at the time. Today it sits just above 3500.