Posted by PrestoPundit on 09/17/2008

in the early part of the decade.  The ones who didn’t see it — the ones who couldn’t see it — were the economically illiterate* macroeconomist  who dominate the Fed, the economic departments, the government, and Wall Street.  The economist idiot savants have a lot to answer for:

This crisis might have first become visible to Wall Street and the Federal Government in August 2007, but this crisis has been unavoidable for several years. If action had been taken in 2004 or 2005 to curtail the loose lending practices, the problem wouldn’t be so severe, but the crisis would have still occurred. The damage had already been done. Unfortunately the U.S. failed to prevent this crisis, and now we have no choice but to pay the price for the cleanup ..

Clearly we are closer to the eventual bottom today, than say in 2005
when very few people believed a housing bust and credit crunch were on
the horizon.  Unfortunately the bottom still isn’t in sight.

*Yes, from the perspective of Friedrich Hayek’s science, economically illiterate.  And Hayek himself often said so.


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