jeremyemilio

Why Did Economists Fail to Predict the Crisis?

This is not a philosophical question; it is a math problem. The economists and market experts simply CANNOT predict crisis in the market because they ARE the market. If all of the economists see a crisis coming, they don't invest, nor do those taking their advice, and voila, no dot com bubble, no housing bubble, no stock market bubble, no crisis. The trouble is, the question then gets spun around: "Why did the economists predict a crisis that never occurred?" To put it another way, the crisis isn't something that occurs in a vacuum, isolated from economic forecasts... it is a SYMPTOM of economic forecasts. I.E.: The crisis wasn't unforeseen by economists wearing rose coloured glasses; it was CAUSED by economists wearing rose coloured glasses.