Interestingly enough, economists have really been scrambling recently to figure out if they know anything at all about the economy. Economic crises are usually great for moving economic theory forward. It had gotten pretty stagnant. Everyone was buying into the same economic theories until the bottom fell out. Economists at first had no idea why things had even gone wrong.
Too much activism by the Fed. Too much reliance on the market as a rational decision maker. Too little taxation during good economic years (keeps the bubbles from getting too big and helps the national debt). Too little regulation and oversight of most of the economy, particularly the financial sector. Too much overextension of credit (highly related to point #1).
Have you never listened to Ron Paul? Everything he said would happen, happened. He is not the only one who predicted this YEARS before it happened.
1. Source? 2. You know what they say about broken clocks...
This is before the bailouts, before Fanny and Freddy.
