Hello Grace, yes, it could be that, in which case he could be wrong about a lot of other matters, as is always the case about anybody else :0)
The Spanking Era, New Age, Now Paradigm myths seem to be exploding sequentially, one kaboom after another kabom, leading on to TeoTwawKi.
You may suspect, it could be that Friedman has in fact admitted that he could be wrong now that he is solidly retired, and he has stranded the still-at-work faithful practitioners in theory-framework abyss without air tube, and left his defense to the still-believers who refuse to reflect on his new wisdom. The other matters on the same pile of ex-brilliance could lead us to conclude:
(a) Productivity gain is not good for employment and profit,
(b) Dow 36k will only happen when a cup of coffee cost $10,
(c) Equity risk premium is not zero,
(d) Diversified holding of tech shares offers no protection,
(e) LTBH is not always a good idea,
(f) Averaging down is silly,
(g) Averaging up is sillier, and
(h) Liquidity cannot always make matters better, only soaking wet, to be worse still later on.
OTOH, everything could be just fine, all going as intended, and liquidity releasing false value will in fact save true wealth, and everyone can in fact trade and reverse trade the same shares, the same houses and the same bonds to NAV nirvana.
We will find out, whether we want to or not;0)
Chugs, Jay |
