I don't know about emptying ATM machines. I don't remember hearing anything like that except from the wackos that thought Y2K may be the end of the world as we know it. What was that, 0.000001% of the population? You shouldn't make plans based on that. I'm obviously not an economist but I heard a lot of not so dumb folks on CNBC, and on SI saying there was a very real danger they could kill the economy and throw us into recession. Looks like they were right. Where's the accountability for these people? If millions are out of work next year because they went too far, what do they get?
I'm getting nowhere since I'm out of my field. In my field, an analogy might be like designing computers. If you design them for all worst case paths wrt speed, instead of using a sigma or 2 sigma approach, the thing will run far slower. In other words, when you have a lot of variables in a situation, you can't assume all of them will be the worst case, or you will severely cripple the product, whatever it is. Well, maybe you have to have been there to know what I mean. In any case, the Fed erred on the side of assuming too many worst cases.
Tony |
