Many like to think that the trouble with finance is that it often goes irrational. But here is a clever quote from Floyd Norris about the credit crunch and the foreclosures crisis:

“Every bank is now acting rationally. They need to conserve capital, so they raise prices, tighten standards and sell foreclosed properties quickly. But when all do those reasonable things, which should have been done years ago, they deepen the crisis for homeowners, and for themselves.” (from “Banks leap from foolish risks in mortgages to none at all”, International Herald Tribune, August 14 2008)

Which means that things turn bad (or worse) when finance goes straight and steady — a message to be passed to mainstream economists.

(Announcement: this is the last post at the Test Society blog, which sadly failed from achieving opinion-making domination after one year of fair and conscientious services.)


  1. panik

    I am sad to read the announcement about the (lack of) future of Test Society.

    I found it both interesting and entertaining, but guess there is only so much one can preach to the converted?

  2. panik,

    Talking about preaching: curiously enough, one Google search that seems to be drawing some traffic to this blog is for “godly names”.

  3. estrellasonora

    Don’t leave us typewritten!!!

  4. estrellasonora,

    Well, this might be just one of those “tests” (?).

  5. il napolitano

    a test to inquire how many react, as a way of achieving sympathy instead of domination? A pity, anyway…

  6. napolitano,

    There is also an underlying idea of focusing only on straight scientific wisdom from now on.

  7. il napolitano

    You mean all was just “for the masses”? In any case please continue sharing the wisdom (scientific or not), and in particular picking up the right stuff (that I’m sure you will do).

  8. mart

    this blog is great, in particular for his sociological view of economy. we need more!

  9. napolitano,

    From a social-scientific point of view, masses are supposed to be fine.


    Well, it seems that this can be interpreted as an experiment on moral pressure. Well, well. An unintended experiment, of course.

  10. estrellasonora

    Hey, I miss your insight!!!

  11. estrellasonora,

    There is an ongoing project for a come back as a collective assemblage.

  12. Update: people objecting here to the closing of this blog can now notice that there is some multi-authored posting activity. Disclaimer: moral pressure did not have anything to do with this.

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