>This is not fair either. 100% of economists would have predicted the outcome if they knew the vast scope of homeowners lying on their applications, that banks

>This is not fair either. 100% of economists would have predicted the outcome if they knew the vast scope of homeowners lying on their applications, that banks were misleading others by packaging crap loans as good ones, that the ratings agencies were not doing their jobs and actually rating the loans properly. It was very widely reported at the time that banks had drastically lowered their standards for loans, and that this had lead to a boom in housing prices. And all this was publicaly defended by conservative politicians and commentators. And it takes only a little thought to figure out the banks were misleading investors, and the bond rating agencies were helping them out. The reason the economists didn't figure it out is they lack the needed common sense.