Heckuva job, economists!

Test your economics IQ against the worst predictors of our times.
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Henry Paulson.

Test your economics IQ against the worst predictors of our times.

Today's mental challenge is to "Match The Experts With Their Statements."

The Experts

A. President of the United States George W. Bush, Harvard MBA (The first President with an MBA).

B. Secretary of the Treasury Henry Paulson, former Chairman of Goldman Sachs, Harvard MBA.

C. Chairman of the Federal Reserve Ben Bernanke, former Professor of Economics at Princeton, Ph. D Economics MIT

D. Chairman of the Council of Economic Advisers Edward Lazear, former Professor of Economics at Stanford, Ph. D Economics Harvard.

The Statements

1. The economy is robust and the best place to see it is that when residential construction is down, nonresidential construction picks up and takes up some of the slack there. There is a good reason to believe that we can be optimistic. (October 5, 2007)

2. The US banking system is well-capitalized and we have a strong deposit insurance system that provides good coverage for the savings of hard-working Americans. (Dec. 7, 2007)

3. This economy of ours is on a solid foundation. (Jan.3, 2008)

4. Our economy has a solid foundation'ꀦOur economy is still creating jobs (January 18, 2008)

5. Our economy is structurally sound for the long-term (Feb. 11, 2008)

6. The U.S. economy is fundamentally strong, diverse and resilient (Feb. 13, 2008)

7. At present, my baseline outlook involves a period of sluggish growth, followed by a somewhat stronger pace of growth starting later this year as the effects of monetary and fiscal stimulus begin to be felt. At the same time, overall consumer price inflation should moderate from its recent rates, and the public's longer-term inflation expectations should remain reasonably well anchored. (Feb. 14, 2008)

8. Our economy, like any other, has its ups and downs. It'ꀙs structurally sound. The long-term fundamentals are healthy. The risks are to the downside right now, but the long-term fundamentals are healthy. (March 8, 2008)

9. Are people behaving as if they believe this is a weak economy? I see no indication of that. In fact, I see the contrary (March 2008)

10. I am confident that our economy will continue to grow because the foundation is solid (March 14, 2008)

11. Given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited. (March 16, 2008)

12. The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained. (March 28, 2007)

13. Among the great strengths of our economy is its ability to adapt and to respond to diverse challenges. Much necessary economic and financial adjustment has already taken place, and monetary and fiscal policies are in train that should support a return to growth in the second half of this year and next year. I remain confident in our economy's long-term prospects. (April 2, 2008)

14. No temporary setbacks can hold back the most powerful force in our economy — the ingenuity of the American people. Because of your hard work and dedication, I am confident that we will weather this rough period and emerge stronger than ever. (May 3, 2008)

15. The worst is likely to be behind us. (May 5, 2008)

16. The data are pretty clear that we are not in a recession'ꀦ.The optimists seem to have been closer to right on that than the pessimists. (May 7, 2008)

17. I think the [banking] system basically is sound, I truly do'ꀦthe economy is growing, productivity is high, trade is up, people are working. (July 16, 2008)

18. Let me say, our banking system is a safe and a sound one. (July 20, 2008)

19. We have a safe and sound banking system in the United States of America. (July 20, 2008)

20. The foundation of our economy is solid, and it's strong (Aug. 18, 2008)

21. The American people can remain confident in the soundness and the resilience of our financial system. (Sep. 15, 2008)

22. I'ꀙve got to say our banking system is a safe and a sound one American people can remain very, very confident about their accounts and our banking system. (Sep. 15, 2008)

23. The economy is fundamentally sound. (Sep. 25, 2008)

24. The Economy is fundamentally sound. Long term fundamentals are sound. Structurally sound'ꀦthere is no doubt about it'ꀦ.I believe we are going to continue to grow. (Oct. 21, 2008)

The Answers: 1-d, 2-b, 3-a, 4-a, 5-a, 6-b, 7-c, 8-b, 9-d, 10-a, 11-c, 12-c, 13-c, 14-a, 15-b, 16-d, 17-a, 18-b, 19-b, 20-a, 21-b, 22-b, 23-b, 24-b.


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