Predicting the bust

Via FT.com | Arena | What is the point of economists? :

“Why did no one see the crisis coming?” Queen Elizabeth asked last year. “A failure of the collective imagination of many bright people” who were all “doing their job properly on its own merit”, was the answer many of those bright people gave in a letter to the Queen last week.

However, via Fred Foldvary, American Journal of Economics and Sociology 56(4): 521-41, quote at p. 538:

the next major bust, if there is no major interruption such as a global war, will be around 2008.

The year? 1997.

See also Peter Schiff, 2006-2007:

Further Reading