Well said Bennie - astrologers often outperform 'professional' money people in the investment portfolios in the Sunday papers. The dartboard and blindfolded pin wielder would probably do well too.

Bennie and Candide

It is not the function of economists to predict the future, any more than it is of biologists.

It is the function of entrepreneurs to predict the future.

80 percent of businesses fail in the first year. Of the remainder, 80 percent fail in the next five years. We would all be better off, wouldn’t we, if we could predict the future, but it’s notoriously hard, even when you directly bear the risk of losses, and anticipate the benefit of profits.

There can be no more stupid way to try to predict the future than to give the job to someone who pays no cost for getting it wrong, or actually profits from getting it wrong and making it worse. This describes virtually all economic interventions of government.

You are spot-on that almost all, but not all, schools of economic thought failed to explain and predict the current financial crisis.

The Keynesians and monetarists that have dominated policy circles for the last 70 years are left with no credibility. If their theories were right, the crisis would not have happened in the first place. As recently as 2008, these high priests, replete with qualifications and impressive titles, were telling us all that the economy is fine, and all we needed was more easy money. In fact they have been the cheerleaders for, and have presided over the greatest act of destruction the world has ever known. Now they externalise the blame and their cure?: – more easy money, more printing presses.

The complexity of the subject matter would make economics difficult enough. But there is one fact that physics or chemistry don’t have to contend with: the special pleading of vested interests. While one policy may be to everyone’s benefit in the long run, some policies serve the interests of specific sub-groups at everyone else’s expense. These groups will spend their time and money persuading the public and politicians that what is good for them, is good for the whole society.

Candide,

You have got 100% right. Try as they may these sneaky neo-conservative economists cannot disguise their real agendas - business as usual only more of it. More power for the corporation and more wealth for the wealthy.

the best definition of an economist I have ever herd is

a person who is expert in every position documented in the Karma Sutra....

but lacking another person to perform them with.

Anyone who listens solely to the words of economists is deserving of and in for a very sad life....