You ignore that smart etc. people have to be able to distinguish between fuzzies and reality. Without a marketplace to weed out poor performers, this is wishful thinking.
I'm not sure what position you are arguing against but I am sure it is not mine.
I live in Europe...
I live in Australia but am visiting Berkeley. I am not sure why this is relevant either.
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Megan McArdle is often interesting on current economics http://www.theatlantic.com/megan-mcardle