The Consensus Being Challenged..

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March 29, 2020
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Having highlighted the role of Professor Neil Ferguson and the team of catastrophists at Imperial College in the 2001 Foot and Mouth Disease response (Oxford versus Imperial) it was interesting to see the article in the Daily Telegraph on Saturday pointing out how much he and his team have already been criticised in the past and adding the role of their forecasting in model in driving the BSE panic. As previously noted, science should propose and politicians dispose. In both previous examples, however, politicians hid behind the false certainty of ‘the science’ afraid of being blamed for every death and turning a blind eye to the opportunity costs of the scientists’ imposed policy. Millions of healthy animals were slaughtered unnecessarily during the FMD ‘crisis’, costing billions, while the projections of 150,000 deaths from BSE crippled the UK beef industry and destroyed exports for years.

https://www.telegraph.co.uk/news/2020/03/28/neil-ferguson-scientist-convinced-boris-johnson-uk-coronavirus-lockdown-criticised/

The Imperial Covid-19 death projections of 510,000 on a do nothing scenario and 250,000 ‘extra’ unless a full lockdown have already been quietly reduced to 20,000 and now 5,600 (which isn’t much more than an averagely bad flue season). And yet in the same way the BSE death total of less than 200 deaths was quietly swept under the carpet, the catastrophists are insisting that they were right. Presumably in the same way Goldman Sach’s risk managers were right ahead of the Lehman collapse?

As a small aside, the Imperial College school of public health also published a rightly criticised and improbably precise estimate of the the public health costs of a no deal Brexit this time last year. Apparently 4110 more people would die from heart attacks and 8290 from strokes over the next decade because a no deal Brexit would mean we would not import any fruit and vegetables. Seriously. As (sadly) with both Project Fear and indeed the Green lobby, many scientists arrive with an agenda and we would do well to treat precise forecasts with a far greater degree of scepticism, rather than the combination of confirmation bias and fear that we currently do.

If we had not known about a new virus out there , and had not checked individuals with PCE tests, the number of deaths due to ‘influenza like illness’ would not seem unusual this year
John Loanidis Professor Medial Health and Research Stamford University

Meanwhile, if we start looking beyond the ‘official’ scientists we find some very interesting articles being published by highly qualified experts such as John Ioannidis at Stanford, quoted above and linked below. In particular the point about the nexus between science, probability and policy and the importance of reliable data.

A fiasco in the making? As the coronavirus pandemic takes hold, we are making decisions without reliable data

And he is far from a lone voice, for those interested, here are a series of quotes from almost two dozen eminent medical experts in a similar vein

https://off-guardian.org/2020/03/24/12-experts-questioning-the-coronavirus-panic/

https://off-guardian.org/2020/03/28/10-more-experts-criticising-the-coronavirus-panic/

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Market Thinking April 2024

The rally in asset markets in Q4 has evolved into a new bull market for equities, but not for bonds, which remain in a bear phase, facing problems with both demand and supply. As such the greatest short term uncertainty and medium term risk for asset prices remains another mishap in the fixed income markets, similar to the funding crisis of last September or the distressed selling feedback loop of SVB last March. US monetary authorities are monitoring this closely. Meanwhile, politics is likely to cloud the narrative over the next few quarters with the prospect of some changes to both energy policy and foreign policy having knock on implications for markets/

Gold and Goldilocks

Bond markets are changing their views on Fed policy based on the high frequency data, seemingly unaware that the major variable the Fed is watching is the bond markets themselves. After the funding panic of last September and the regional bank wobble last March, the twin architects of US monetary policy (the Fed is now joined by the Treasury) are focussing on Bond Market stability as their primary aim. Politicians meanwhile, having seen how the bond markets ended the administration of UK Premier Liz Truss in September 2022 are keenly aware that it is not just "the Economy stupid", but the Economy and the markets that they need to manage the narrative for both voters and markets. They all need a form of Goldilocks - either good or bad, but not so good or so bad as to trigger either the markets to sell off or the authorities to react. Investors, meanwhile, conscious of the precarious balancing act Goldilocks requires, are increasingly looking at Gold.

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