Posted: Feb 21, 2014 9:42 pm
by UndercoverElephant
Panderos wrote:
VazScep wrote:The bees might not realise they are building a hive.

I know what you're saying here but it seems unlikely that applies in banking, at least to the fundamentals. Banks in a particular country are part of a centralised system controlled by a central bank which can only work in one way in a given place. So not knowing how it works would be like not knowing the rules of a board game you yourself have designed.

Predicting the effects, sure, that might be hard. But not knowing how the different accounts interact would render banks unable to operate.

Yes, but it is only the people at the top, or people who have direct knowledge of how the systems work (e.g. the programmers who write the software) who would know if there was a widely-believed mythology in circulation. Most of the workers in the banking industry, and most students of economics, could easily have got this wrong. They have no more reason to understand it than bees have to understand they are building a hive. It's not something every economist or bank employee would know.

As I said before, I know somebody who was studying for a doctorate in economics when I introduced her to these ideas, and it was news to her. She was shocked.