Media coverage of the economic implications of Covid

[Duke of Marmalade]

I see David McWilliams has a regular IT Saturday slot. I thought of opening a thread dedicated to react specifically to that slot but I suppose it would be better if it was more generally to cover media coverage of the economic implications thus including commentators like Colm McCarthy, Stephen Collins, Dan O'Brien etc.
This opener is however focused on the DMcW piece in today's IT.

The thrust is that the economic response must be unconventional. That of course is DMcW's signature tune - how he can think outside the box unlike those mainstream economic commentators. Previous hits on the meme were "blanket guarantee a master stroke", "exit the euro", "forgive all mortgages", "drop helicopter money".

In today's piece it is actually difficult to spot the stroke of genius though the tone suggests that he believes it is there.

My understanding is that he is suggesting that the interest rates on all existing loans should be set to the current ECB rate, i.e. effectively zero per cent. He really likes "all in" solutions, no room for nuance: guarantee all bank deposits, exit the euro, forgive all mortgages, give everybody a dollop of helicopter money. The proper management of this unprecedented economic situation will need much more subtlety than that.
McWilliams' problem is that he has typecast himself - he has to pull unconventional rabbits out of a hat every time. I suppose he sells papers, after all I do read his column but for informed commentary I rely on the other names I mentioned above.

 

[joe sod]

McWilliams' problem is that he has typecast himself - he has to pull unconventional rabbits out of a hat every time.

I had a quick look at it but its behind a paywall. He focussed in on Pascal Donohue maybe because Pascal shot down his big borrowing idea with ease, in other words david mcwilliams is now an irrelevancy to the movers and shakers and the guys that make the big decisions. He is like a football pundit long past his career as a professional footballer and now being ignored by the guys on the pitch. He is becoming like the Eamon Dunphy of finance good for a rant and sound bites but irrelevant.

 

[Sunny]

Yeah waste of time reading him now to be honest. Worst part is that the guy is really intelligent and can make good points. Unfortunately they get lost in the celebrity chasing headlines. I think there are a few economists who miss being called every day for media interviews like during the financial crisis. There will be a few doctors and professors of odd sounding things doing the same after this crisis.

 

[Duke of Marmalade]

It has dawned on me that McWilliams has no fans in this parish, and me thinking I was being iconoclastic. As a result this thread will probably run cold.

 

[Purple]

I think voices like McWilliams are important, even if they just cause people to question the mainstream views of how to react to this or any other crisis.

He’s entertaining and gets more people talking about economics, even if only to conclude that simplistic silver bullet solutions are rarely the solution.

 

[Duke of Marmalade]

I think voices like McWilliams are important, even if they just cause people to question the mainstream views of how to react to this or any other crisis.

He’s entertaining and gets more people talking about economics, even if only to conclude that simplistic silver bullet solutions are rarely the solution.

Ahh! I thought I might flush out a closet McWilliams fan
Thankfully these days nobody that matters takes him seriously. O'Donohue had no problem immediately rejecting his (not original) helicopter money idea.
Unfortunately it was not always so. In 2008 Lenihan consulted the oracle (as He is fond of reminding us) and the result was the blanket guarantee of all deposits including those in Anglo and INBS. A move which McWilliams immediately acclaimed as a masterstroke, His masterstroke.

 

[24601]

I find Eamon Dunphy's podcast, The Stand, is actually very good in terms of COVID economic discussion. He often has episodes with Dan O Brien and Chris Johns on together. Definitely worth a listen.

McWilliams is a total quack at this stage. I'm guessing he has some sort of Winning Streak type spinning wheel in his home where each segment has a more bizarre, out-there idea than the next, and he just gives that a spin before putting pen to paper or recording a podcast.

What's the story with Colm McCarthy? I always found him very insightful and straight-talking when it comes to the public finances and enjoy his articles. Has he had any formal government advisory role since An Board Snip Nua?

 

[Duke of Marmalade]

I find Eamon Dunphy's podcast, The Stand, is actually very good in terms of COVID economic discussion. He often has episodes with Dan O Brien and Chris Johns on together. Definitely worth a listen.

McWilliams is a total quack at this stage. I'm guessing he has some sort of Winning Streak type spinning wheel in his home where each segment has a more bizarre, out-there idea than the next, and he just gives that a spin before putting pen to paper or recording a podcast.

What's the story with Colm McCarthy? I always found him very insightful and straight-talking when it comes to the public finances and enjoy his articles. Has he had any formal government advisory role since An Board Snip Nua?

Yes Colm McCarthy is sound though he has a bit of a bee in his bonnet that the ECB shafted us on the bail out.
I was puzzled by a thread in his recent posts that we were facing a "supply side" shock. To me and to other commentators it looked so much like a demand side shock - people weren't spending. But I think I now see what he means. If it was a demand side shock then McWilliams helicopter money might at least have some merit. But it is not that demand is lacking, it is that supply is forbidden, no amount of helicopter money will open the pubs.

 

[Purple]

Ahh! I thought I might flush out a closet McWilliams fan

How dare you!!

Thankfully these days nobody that matters takes him seriously. O'Donohue had no problem immediately rejecting his (not original) helicopter money idea.

I'm a fan of Pascal alright.

Unfortunately it was not always so. In 2008 Lenihan consulted the oracle (as He is fond of reminding us) and the result was the blanket guarantee of all deposits including those in Anglo and INBS. A move which McWilliams immediately acclaimed as a masterstroke, His masterstroke.

It was a masterstroke; it made him a fortune.

 

[Firefly]

I see David McWilliams has a regular IT Saturday slot.

I subscribe to the IT and read his contributions most Saturdays. On the whole I find his posts worth a read however I don't agree with much of his solutions. One idea he has mentioned before however is that of the government receiving shares in the multinationals operating here with the idea of building up a sovereign wealth fund. I think this could be worth exploring.

Last Saturday he referred again to a term he is trying to coin called Pandession. He has mentioned it numerous times so I can only assume he has a book in the works

 

[Purple]

He has mentioned it numerous times so I can only assume he has a book in the works

I was thinking the same thing!

 

[24601]

I subscribe to the IT and read his contributions most Saturdays. On the whole I find his posts worth a read however I don't agree with much of his solutions. One idea he has mentioned before however is that of the government receiving shares in the multinationals operating here with the idea of building up a sovereign wealth fund. I think this could be worth exploring.

Last Saturday he referred again to a term he is trying to coin called Pandession. He has mentioned it numerous times so I can only assume he has a book in the works

He'll remind us all ad nauseam how he coined the phrase á la "breakfast roll man" if it gains any sort of traction. He's a serious egomaniac. He must mention his prediction of the bubble bursting and his VIP consultation with Brian Lenihan about 3 times a week.

 

[Purple]

He'll remind us all ad nauseam how he coined the phrase á la "breakfast roll man" if it gains any sort of traction. He's a serious egomaniac. He must mention his prediction of the bubble bursting and his VIP consultation with Brian Lenihan about 3 times a week.

Maybe, but I always look for the good in people and not take strong positions on things.

 

[Firefly]

He'll remind us all ad nauseam how he coined the phrase á la "breakfast roll man" if it gains any sort of traction. He's a serious egomaniac. He must mention his prediction of the bubble bursting and his VIP consultation with Brian Lenihan about 3 times a week.

I love all the references he makes to having worked in the Central Bank. You'd swear he was running the place.....

Oh, and the soccer stuff too! And the Dalkey stuff come to think of it!!

 

[joe sod]

He'll remind us all ad nauseam how he coined the phrase á la "breakfast roll man" if it gains any sort of traction.

in fairness to him "breakfast roll man" really nailed it at the time but it wasn't really that original as he borrowed it from "white van man" invented by the UK tabloids to describe a demographic that read their papers and swung elections in the UK, eg it was "white van man" that won it for Tony Blair.

 

[Purple]

McWilliams is back peddling his new catchphrase and his "outside the box" thinking is to borrow our way out of the coming recession.
His latest offernace reads like a Leaving Cert answer.

 

[Baby boomer]

It's all about promoting brand McWilliams. He's in the entertainment business, not economics. He's a celebrity who happens to be an economist rather than vice versa.

Not that I'm objecting, btw. Just accept it for what it is, mildly entertaining.

 

[Firefly]

... to borrow our way out of the coming recession.

I am hearing this more & more. The argument is usually that it makes sense to borrow as rates are so low. What is never mentioned is that governments never actually repay the debt but roll it over....we are therefore at the mercy of the markets at a future date to give us a decent rate for the money we borrow today.

If we employed a counter-cyclical strategy of increasing government spending when times are tough but cutting government spending when times are good I would say fair enough. But in Ireland there is even more pressure put on the government to increase spending when times are good "Sure, can't we afford it and deserve it?"

 

[Cricketer]

McWilliams first mentioned 'pandession' in the IT on 16th May. However, it's mentioned here on 22nd April. Did he really coin it?

 

[Purple]

Interesting view on ending the Lockdown from two guys at The Centre for Evidence-Based Medicine in University of Oxford here.