The belief that human beings are fundamentally rational individuals is perhaps the most important foundational element of modern economics. While no economist would ever claim that all individuals are rational all the time, it has long been thought that rational
According to the Financial Times, Google is planning to construct a price index that could eventually serve as an alternative to official government statistics. While the Google Price Index (GPI) is still a work in progress and only tracks web-traded goods, the potential for expansion into other sectors of the economy could provide a more complete picture of inflation in the future. If fully developed, the GPI may keep government statistics honest in periods of higher inflation.
There probably is no other prominent American who is less suited to the sound bite than Berkshire Hathaway Vice Chairman Charlie Munger. In any particular appearance, specific comments made by Mr. Munger can be collected in a manner that leads to a highly unflattering overall portrait. Charlie Munger does not need any defenders, and we do not necessarily agree with or endorse all of his views. Regardless, it is interesting to make a few observations regarding the reaction to his recent lengthy appearance at the University of Michigan. Read this article for more details.
Warren Buffett is not buying into projections of an imminent “double dip” recession and sees a broad based economic recovery ahead. Berkshire Hathaway’s diverse collection of operating companies gives Mr. Buffett a unique view into the health of the overall economy and he has frequently commented on overall economic conditions over the past few years. Read this article for more details.
While the track record of macroeconomic forecasting leaves much to be desired, it is natural to have an interest in the growth prospects of the global economy. Recently, Europe has been at the forefront of investor concern due to fiscal instability in Greece and other smaller European economies. There has even been talk of the disintegration of the Euro. Read this article for a link to the Financial Times “Economic Weather Map”