Shortly after the earthquake and tsunami struck Japan, government and Wall Street economists downplayed the impact on Japan’s economic growth as well as that of the rest of the world. Next, the nuclear reactor meltdown began to worsen and still, these same economists minimized the economic impact of these events.
In the Intelligent Investor newsletter, I discussed that these estimates had been significantly downplayed. My view was that the combined impact of the catastrophes in Japan would add a significant component to what I had already forecast as a slowdown in the global economy in the second half of the year. I even wrote a follow-up on the site several months later confirming this reality. See here.
At the time, there was not even mention by Wall Street or any of the establishment economists (ECB, IMF, etc.) of the possibility of a slowdown in the second half of the year. Thus, once again, the so-called experts confirmed just how useless they really are.
Never mind that officials at the IMF are very well-paid and receive one of the most generous pensions in the world (they can retire at age 62).
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