I actually disagree with this concept of "one economy", preferring the Austrian perspective, which sees the "economy" as a group of millions of somewhat independent exchanges.
But I do find it interesting that there can be 100s of studies published each year that you ignore, but suddenly one blows me out of the water. If we are going to be parsimonious here, I think we follow the market, which isn't yet telling us we are in for a fall.
PS I do believe that malinvestments can lead to undesirable outcomes, as I intimated in the previous post. I am just trying to give you some peace of mind, through perspective. Look at the great depression and compare it to the great recession. I think we would all much rather experience the great recession, even though both were very serious downturns of the "economy". Why do you think that is?
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It is in the admission of ignorance and the admission of uncertainty that there is a hope for the continuous motion of human beings in some direction that doesn't get confined, permanently blocked, as it has so many times before in various periods in the history of man.
-Richard P. Feynman
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