Well the spin artists are at work to explain why the economists failed to foresee and prevent the present worldwide credit crunch. The fact is that any idiot could see what was coming and it does not take an economist to add house prices, energy prices, and interest costs into an inflation index that actually measures the cost of living. People were told inflation was low when it was raging at unprecedented levels. Does the modern economist not know what inflation is? Nor Brown, nor Greenspan! It is no excuse not to act when 'you' know how to act. Why are the spin people presently making excuses why 'you' did not act when 'you' should have acted.
Is it because of the collective greed of those wishing subconsciously for their property prices to rise and then letting them go where they should not have gone. Why does the inflation index these days not measure inflation, nor deflation?
No! The reason the credit crunch occurred was because of the inability of American and British financial authorities. A shrinkage of the financial houses away from New York and London is called for. The financial world seems unable to read history and I doubt whether many economists every studied economic history. What has happened is shameful and should never have taken place. So much for the international watchdogs and the supervisory role of the central banks. They have failed and that is all there is to it. Rather than avoiding inflation, they created it and rather than helping us, they have sown the seeds of the next war. What has happened and what is happening is positively appalling!
Mr. Soros and the Head of the European Central Bank! We owe them a debt of gratitude for seeing through the clouds and surrounding fogs of London, San Francisco, and New York.