Yves Smith has a post entitled Why the Happy Talk About the Credit Crisis?
am frequently mystified at what goes on in the markets. I am even more mystified when people who ought to know better make pronouncements that appear to be profoundly counter-factual. Even if they are talking their own book, the high odds of being
revealed as bald-faced liarsproven wrong ought to make them worry about damaging their credibility.
Is this wishful thinking? Delusion? A hope that that a united front can change perceptions and therefore reality? (see this as Tinkerbell behavior: if we all clap together, the markets won’t die).
Its an interesting post, and he provides plenty of examples. And it got me thinking about GW’s admission that he was BSing about the situation in Iraq in 2006, when it was fairly obvious that things were going badly.
So what was benefit? Well, the soldiers on the ground knew the score, as did the insurgents, and a fair portion of the American public. Maybe the Happy Talk is intended simply to keep the last true believers in line. That buys time – anything can happen with time. And it also buys a possible sucker to come take the problem off your hands.
That’s the best I can come up with to Yves’ question. Anyone have a better answer?