Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
April 22, 2015
It’s interesting to hear “experts” in the oil industry expound on the future price direction of oil. Often these interviewed experts are the CEOs of major oil companies. Many say the current price of oil ($50 a barrel) is temporary and will eventually trade back toward $100. But not one was prescient in forecasting the recent 50% decline. ...