Only listened to Rush for about a total of four minutes today but what I did hear he played clips of Warren Buffet talking about the economy. This got me to think about a troubling thing Rush will do when talking about the economy. He likes to play clips or quote great business minds about our current economic condition. He will never make the very important distinction of micro vs macroeconomics. Most of us understand and can follow microeconomics, this is how individuals, families or businesses manage their finances. Microeconomics in a nutshell is: keep your expenses below your revenue. If you ever thought you were spending more money than you should or had to cut-back on expenses them you were practicing microeconomics.
Macroeconomics is a completely different beast. I had a great Economics professor who summed up the difference in micro. vs. macro. He said that if you polled 10 economists you would get agreement by 10 out of 10 for micro principles but for macro out of the same 10 economists you would get 12 different opinions. Without boring everybody there are different macro schools of thought that can work: classical, Keynesian, monetarism, fiscal and monetary policy. But to have guys like the usual suspects of Buffet, Jack Welch, Jim Cramer etc. telling everybody what's going to work or not work is a little ridiculous. I would take there advice on acquisitions and mergers, portfolio management, how to build a business but quite frankly they are ill-equipped to talk as if they are experts on macroeconomics issues.
But what do you expect from the leading member of the drive by media?
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