At the Big Four audit firm KPMG in 1994, a senior audit partner in banking, John Buttle, sponsored and co-authored a paper with Boughton called ”Real Estate, Banking & Business Cycles” in 1994, to see how general theory might look with real estate and finance at front and centre.
This was well received at the time by Westpac, which had neared collapse in the last property crisis of the early 1990s, and Macquarie Bank called in KPMG to help forecast short-term movements in their new property-based securities, which behaved “differently” to other securities, a near-impossible task at that stage. KPMG asked about their portfolio in Asia, which was growing, and gave the same advice as at the KPMG Industry Week Forum, which it was to exit within three years.
(Excerpt from “A new economic theory is needed“)
One thought on “Four years later “A new economic theory is needed” remains a powerful read”
Good link. This quote from Upton Sinclair immediately springs to mind:
“It is difficult to get a man to understand something, when his salary depends upon his not understanding it!”
It is notable there is not trace of that 1994 KMPG report on the net BTW. Too many inconvenient truths there for the usurious rentier brigade (FIRE sector).
It is astounding that mainstream economics has not seriously attempted to wed Georgist principles with other promising off-shoots of economics such as Post-Keynesian stuff attempted by Keen, Graselli and others. The evidence is there, well over 100 years of data, and they keep jerking our chains with equilibrium theory and exogenous shock crap? WTF? These clowns should be hounded out of academia and government institutions alike.
It’s time society stopped apologizing and defending their propaganda and began rubbishing and humiliating their ideas and idols, which are simple Ayn Randian falsehoods generated to keep the concerted wealth re-distribution UPWARDS to the 1% crony capitalists.
With respect to the bankers, the Rolling Stone magazine said it best:
“The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.”