America's leading forecasters missed the 2008 market crash, during which stock financiers lost half their loan. Now with stocks approaching bubble territory it looks they are once again ignoring warnings indications. What gives?The biggest red

flag is the S&P 500 index, which groups 500 of America's biggest public business and is trading near record highs. This in spite of a slow United States economy driven by record federal government costs, loaning and cash printing.In short, conditions look exactly like those that dominated just prior to the 2008 monetary crisis, when equities investors lost half their money in a matter of months. So why have not the professionals, many of whom are near-genius-level, ivy-league experts, provided clear cautions about the threats in the system? Knowledge from a 1970s self-help guru? One idea might come from seeking advice from thinkers from

outside the economics profession, like

er ... Robert Ringer? Yes that Robert Ringer. The self-help guru, who in his 1970s best-seller Looking out for # 1, laid out a helpful template to use when examining human behavior."All individuals act in their own interest all the time, "writes Ringer, who believes that people re-define self-interested actions

to make themselves look virtuous. What Ringer calls the" definition game "makes it possible for politicians, like recently-retired ex-Conservative Party leader Rona Ambrose who took home nearly

$5 million in salaries and pension advantages for just 13 years work, to explain herself as a"public servant."Ringer's"human nature group"theory in many ways explains contemporary human action better than Hobbes, Nietzsche and even Ayn Rand, yet appears dark when used to individuals-- even to politicians. It has a strong basis in scholastic theory. Diplomacy professionals, for instance, broadly accept that federal governments( which integrate individual actions on an enormous scale )act in their own interests all the time

-- which they invent justifications as they go along. Otto von Bismark, a key innovator in worldwide relations theory, describes this as realpolitik. If governments act that way, it needs to be no surprise that political leaders-and the people who elected them-would do so also. Governments want you to spend Ringer's theory recommends that-nevertheless well-intentioned they are- that politicians 'primary interests are not to do a great job, however to get re-elected, and, more broadly, to maximize theirlife time prospective revenues and prospects.If Ringer is right, then it should not be unexpected that politicians would excuse positive projections that motivate governments, consumers and companies to borrow and spend due to the fact that the resulting short-term economic activity would assist them win the next election.In this scenario built up debts would just matter to those politicians if the concern revealed signs of imploding on their watch.F inancial Institutions want you to obtain Financial experts and forecasters at the huge banks are among the world's best trained

and highly-respected. This regardless of the fact they too missed out on the 2008 crash and recession.If we think Ringer's theory that monetary sector forecasters are acting in their own interests all the time, this would
recommend that they are most likely working for managers who are more concerned with producing brand-new company than with being precise. In that scenario the accuracy of their projections would be less crucial than how much activity they encouraged.It would also recommend that any big bank forecaster that had a regularly and markedly bearish outlook would be fired. Auditors and regulators prioritize lease extraction Professionals say that one of the American monetary system's major advantages is the high quality its guard dogs, such as the SEC, FINRA, FASB, public accountants, scores companies and other regulators.

Yet despite favorable reports from all significant public accounting companies and US regulative bodies, all the significant US banks and much of the vehicle sector had actually to be bailed out during the last financial crisis. None, have offered any warning of substantial hazards this time around. Ringer's"self-interest theory"would argue that the reason for this is that regulators are more incentivized to draw out leas from the system than in

serving the public. If that holds true, you would anticipate to find regulative bodies including guidelines(such as abundant Dodd-Frank guidelines), personnel and enhancing salaries, however also making certain that their departments would just have undefined duties, so they would not be blamed if another crisis hits.They might then utilize a subsequent crisis to ask the public for a lot more funds, powers and personnel. Speak well, but validate If Ringer is best why doesn't mainstream media, or even independent analysts, report

this? One reason, is that in courteous society, it is really hard to question somebody's motives. Especially if you have to deal with that individual regularly and he(or she)may one day have a chance to assist you( or to extract repayment ). The Economist magazine balances its posture by only questioning the intentions of

leaders of countries outside the western orbit like North Korea, China, Iran and Russia, whom they frequently

describe as"entirely interested in keeping power.

"However the actions of Western federal governments, whom the magazine courts, are typically reported as acting for the public good. The idea that a 1970s self-help master's theory provides a guide as to why another financial crisis may be unavoidable appears laughable.However that our Harvard economics PhDs, market CFAs and regulators are so regularly incorrect recommends that they may be putting their interests prior to those of the general public. It also suggests that private investors had much better hedge their bets.(Note: Mr. Ringer, who is nearing his 80th birthday, however continues to blog site regularly at(http://robertringer.com/, did not react to ask for comment ).

WeCareAboutYouToo!Positive LifeEconomy,Financial crisis of 2007?2008,Objectivists,Ringer,Robert Ringer,Stock market crashes
America's leading forecasters missed the 2008 market crash, during which stock financiers lost half their loan. Now with stocks approaching bubble territory it looks they are once again ignoring warnings indications. What gives?The biggest redflag is the S&P 500 index, which groups 500 of America's biggest public business and...