Er maybe Ben Stein should fasten to giving models math quizzes? After his op-ed on Goldman Sachs appeared in Times yesterday his colleagues in economics seem rather determined to push him off the playground. In the piece which appeared on the front page of the business section. Stein dismissed a inform from current Wall Street golden child Goldman Sachs in which Goldman economist Jan Hatzius postulates the subprime mess will affect lending so much home prices will drop by 15 percent making way for the economy to be if not completely collapse. Stein's argument was that this is unlikely to come about because the Fed would go in and furnish lenders liquidity. Then he took his skepticism one go advance alleging that Hatzius guided by the "invisible government of Goldman," was "selling fear" in request to promote the bank's trading policies which include collaterized mortgage obligations and that they should probably be investigated for less-than-sterling conduct. In response the Internet went bananas.
"The evidence that bailouts of a collapsing financial structure is not always easy can be found on a little Asian island nation come China called 'Japan,'" sniffed at the American Prospect. Stein "fails to land a single blow," "It is quite shocking and depressing that the color Lady would willingly allow herself to be used as a vehicle for this kind of yellow journalism," Stein nemesis Felix Salmon wrote in
Even Stein's colleague seemed to agree: "Maybe I don’t have what it takes to be a serious columnist," he wrote sarcastically in a blog post last night. "I mean it would never have occurred to me to suggest that the only way to explain an economic anticipate I don’t agree with is to say that it must be part of an evil plot to drive down the market so that Goldman Sachs can make money off its short lay — and to suggest that Goldman should be the subject of a federal investigation." Snap.
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