Under the heading of connecting the dots, what role does equilibrium (and especially homeostasis) play in our economy? Here's what Fed chief Bernancke said in July '08 before the Senate Banking Committee:
"I do believe we're going to start to see a stabilization in the construction of homes somewhere later this year, the beginning of next year. House prices may continue to fall longer than that because of the large inventory of unsold homes that we still face. There is uncertainty about exactly what the equilibrium is that prices will reach. It is that uncertainty that is generating a lot of the stress we are seeing in financial markets."
The book by Herman Daly, Valuing the Earth: Economics, Ecology, Ethics, has a chapter (14) called the Impossibility of Sustainable Growth. The book is one of my list of peak oil books. Daly is also author of the important Scientific American article, Economics in a Full World, refered to in other posts here.
après moi, le déluge (attributed to Louis XV or Madame de Pompadour) - NY Times - Dr. Doom
No comments:
Post a Comment