Politicians may have to shoulder some blame for the unexpected drop in early October consumer sentiment. Economists at J.P. Morgan write that the sentiment index regarding government economic policy fell seven points in October to an all-time low of 47, “one point lower than what was reported after the most intense stage of the debt ceiling debate in Washington.”
The economists say comments released along with the data suggest consumers less happy with the Fed, “though it is unclear if that means consumers think the Fed should be taking more or less action.”
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Mmm. Sounds like we consumers better learn how to distinguish between policy proposals before they go to the ballot box, since we have so little faith in how the experts manage the job.
The Reading List:
Books/films on the recent financial crisis:
Cassidy, John. How Markets Fail.
Fox, Justin. The Myth of the Rational Market.
Lewis, Michael. The Big Short.
Morgenson, Gretchen. Reckless Endangerment.
Ritholtz, Barry. Bailout Nation
Stiglitz, Joseph. Freefall: America, Free Markets, and the Sinking of the World Economy.
Tett, Julian. Fool’s Gold.
Inside Job – Academy-Award winning documentary film.
Books investigating the logic of economics, politics, and finance:
Ip, Greg. The Little Book of Economics
Greider, William. Secrets of the Temple: How the Federal Reserve Runs the Country
Mandelbrot, Benoit. The Misbehavior of Markets.
Minsky, Hyman. Stabilizing an Unstable Economy
Paul, Ron. End the Fed
Rajan, Raghuram. Fault Lines.
Rajan, Raghuram and Luigi Zingales. Saving Capitalism from the Capitalists
Rothbard, Murray. The Case Against the Fed
Rothbard, Murray. The Mystery of Banking
Shiller, Robert. Irrational Exuberance
Shiller, Robert. The New Financial Order: Risk in the 21st Century
Shiller, Robert and George Akerlof. Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
Sowell, Thomas. Basic Economics: A Common Sense Guide to the Economy
Taleb, Nassim Nicholas. Fooled By Randomness.
Taleb, Nassim Nicholas. The Black Swan: The Impact of the Highly Improbable.
Warburton, Peter. Debt and Delusion
Weitzman, Martin. The Share Economy
Bernstein, Peter. Against the Gods: The Remarkable Story of Risk.
De Soto, Hernando. The Other Path
Friedman, Milton. Capitalism and Freedom
Friedman, Milton and Rose. Free to Choose
Galbraith, John Kenneth. A Short History of Financial Euphoria
Hayek, Friedrich. The Road to Serfdom
Hayek, Friedrich. The Fatal Conceit
Hazlitt, Henry. Economics in One Lesson
Kelso, Louis and Mortimer Adler. The Capitalist Manifesto.