| Nouriel Roubinin Opening the Floodgates of Metaphor |
In a recent article Roubini wrote an economic "perfect storm" is "unfolding" across the globe, because of four "elements," including a "cooling economy," and that central banks have "run out of policy bullets" and policymakers are "running out of rabbits to pull out of the hat."
In a few short paragraphs, he compared economics to weather patterns, cloth, chemistry, thermometers, target practice, and magic acts, depleting his own metaphorical supply until he was reduced to a far-fetched analogy to physics: "Levitational force of policy easing can only temporarily lift asset prices as gravitational forces of weaker fundamentals dominate over time."
Unfortunately reckless overuse of metaphor among financial writers is not restricted to Mr. Roubini. Bill Smead, CEO of Smead Capital Management, agreeing with Mr. Roubini on CNBC went metaphorically from plumbing, to broken ceramics, to the digestive-tract in a single sentence, "There is virtually zero chance that pump-priming by central banks will succeed... policymakers should instead let the economic bust work itself through the system."
(Originally posted 2012)
(Originally posted 2012)
