You write: "I would like to point out that the understanding of real world economics is developed enough to make very accurate predictions. "For ins

You write: "I would like to point out that the understanding of real world economics is developed enough to make very accurate predictions. "For instance, I knew in late 2000 or early 2001 that there would be a housing boom, a housing bubble, and a banking crisis when it burst. ..." I don't think "knowing" constitutes prediction. If a housing bubble were predictable, the factors creating it, the timing, the drivers, and all manner of detail would have been generally known, as would the impact of the bubble in the short, medium, and long term. Moreover, we would have been able to explore various options that would mitigate the impact of the bubble or eliminate it all together.