Adam Davidson Quotes
The economics profession advances by one confusing financial disaster at a time.
Davidson, Adam. "It's the Economy." The New York Times Magazine, The New York Times Company, 2012.
Born thought that her agency was responsible for regulating the new esoteric financial products—derivatives including credit default swaps—for otherwise there would be no regulation at all of financial products that could dwarf the stock and bond market. Summers persuaded her to back off. When the Meltdown of 2008 hit, the huge derivative exposure of the large banks and some insurance companies was so great that it was one of the major causes for the meltdown of the entire banking system. Summers, normally a great economist not only called this one wrong, but later, along with most other government and private economists ignored a very explicit warning—See {637168}, {637986}, and {620038}.
This is an oft quoted statement because of the Great Depression which occurred the following year after Strong had passed away. The Federal Reserve followed the lead of President Hoover and did nothing while they watched the nation’s money supply shrink a third over the next 3 years, making a business comeback very difficult. If Strong had lived longer, he might have persuaded the others to increase the money supply and act as the nation’s safety valve. As the President of the New York Bank, he was the first among equals.
Adam Davidson (born 1970) is an American journalist. He was a co-founder of NPR's Planet Money program. Previously he has covered globalization issues, the Asian tsunami, and the war in Iraq, for which he won the Daniel Schorr Journalism Prize. He and Adam McKay were former co-hosts of Surprisingly Awesome from Gimlet Media. Davidson worked as an economics columnist for The New York Times Magazine and in 2016 took a position at The New Yorker.
