There have been people like Peter Schiff warning about the recession and specifically saying when it will happen and how long it will last, and even politicians like Ron Paul warning about the housing bubble since 2003. They just refused to believe it, and I guess everyone in the Fed fell prey to group think. They couldn't admit to themselves that their strategy was failing, and even worse, that they were responsible for the economic failure through their policies over the past few years.
I also vividly remember when Greenspan stepped down - the government and the media was effusive in praising the guy. For an area of study that stresses the importance of lagging indicators, most economists were content with immediately solidifying Greenspan's legacy. Looking back on that period of calm before the storm is really interesting.
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There have been people like Peter Schiff warning about the recession and specifically saying when it will happen and how long it will last, and even politicians like Ron Paul warning about the housing bubble since 2003. They just refused to believe it, and I guess everyone in the Fed fell prey to group think. They couldn't admit to themselves that their strategy was failing, and even worse, that they were responsible for the economic failure through their policies over the past few years.
http://www.youtube.com/watch?v=LfascZSTU4o
http://www.youtube.com/watch?v=mnuoHx9BINc
I also vividly remember when Greenspan stepped down - the government and the media was effusive in praising the guy. For an area of study that stresses the importance of lagging indicators, most economists were content with immediately solidifying Greenspan's legacy. Looking back on that period of calm before the storm is really interesting.