A number of blogs did very well in describing the problems in the subprime market – even before most professional economists realized the problems. This fascinates me, like for instance the fact that in order to get cutting edge information about technology one rather consults blogs than major mainstream media. Of course, the smarter mainstream media now incorporate blogs in their operations, even allowing them a great deal of autonomy. It seems to be an illustration of how efficient those small, nimble entities can be, using the internet and network effects.
Edward Hugh gave an interesting talk about blogs and the internet at the London School of Economics: how the internet changes the practice of macro-economics.
Via Edward Harrison on Credit WriteDowns.