E.T. IS OUT OF TIME

The Economical Thinking (E.T.) had an upgrade. The mysterious framework of interpretation that once made people believe in invisible hands that organize the markets and create wealth now has been replaced by a mechanistic thinking that makes people talk about leverage effect of the European Stabilisation Mechanism (ESM).

Both paradigms lack of transparency. As well as nobody has ever seen the invisible hand at work no one knows how the stability mechanism works. The leverage effect is a big secret.

What baffles me is that today's economists are searching for mechanistic solutions whereas the financial markets are already running with the performance of the information age.

At least this is a way to explain why we have financial crises again and again: E.T. is out of time.