British economists send apology to queen for failing to forsee recession

July 26, 2009

(ChattahBox) — A group of eminent economists have apologized to Queen Elizabeth II in writing, for failing to predict the financial crisis. The letter came in response to the Queen asking why nobody had anticipated the credit crunch, during a visit to the London School of Economics last November.  It’s a great question worth an answer, just for the humiliation factor, but a great follow-up might be why should we take anything they have to say seriously in the future.

In a three-page letter, the so-called economic experts said they completely failed to “foresee the timing, extent and severity” of the credit crunch, according to The British Observer newspaper, which said it had obtained a copy of the letter. The letter, signed by Bank of England Monetary Policy Committee member Tim Besley, said how cheap borrowing had encouraged a “feel-good factor”, which masked a global imbalance in savings and debt, the newspaper said. It further spoke of the “psychology of denial” that gripped the political and financial world in the build-up to the crisis.

“In summary, your majesty, the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole,” the newspaper quoted the letter as saying.

They call it the “psychology of denial,” but it’s more like an unwillingness to look at things objectively. Months before the financial meltdown, economists like Peter Schiff were saying to get out of the market and get into investments like gold.  But Schiff and others were ridiculed and last off by the talking heads on CNBC.


Comments

2 Responses to “British economists send apology to queen for failing to forsee recession”

  1. British economists send apology to queen for failing to forsee recession « acc3ss.info on July 26th, 2009 2:03 pm

    […] Originally posted here: British economists send apology to queen for failing to forsee recession […]

  2. Idaho on July 26th, 2009 9:47 pm

    Perhaps a knighthood for Peter Schiff is in order.

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