Power of open market operations over business situations.

During boom periods, ‘ludicrously exaggerated opinions’ develop about the power of open market operations over business situations. On the other side, during the bust, the exact opposite opinion takes hold.*

This is interesting from the NAMA perspective. On the one side, we have a body of opinion (as per majority on this forum) postulating that NAMA will be unable to overcome such open market forces. Conversely, those who have come up with NAMA - the politicians, Michael Sodens, KPMGs, Arthur Coxes, Jones de la Salles, and assorted economists believe in being able to subjugate and manipulate open market forces through the manipulation of money aggregates and associated business operations etc.

Which view do people think will prevail?

  • From Schumpeter’s essay ‘The decade of the twenties’ - he was referring to opinions held by the economic profession during these periods.

I laugh then cry as the high priests of free market anything apply “anti market” solutions… they don’t believe in contradictions. They certainly don’t believe in you.