To be fair, Fannie Mae changed its practices, engaging in the risky "financial innovations" that caused problems for a lot financial institutions, after Stiglit

To be fair, Fannie Mae changed its practices, engaging in the risky "financial innovations" that caused problems for a lot financial institutions, after Stiglitz' original study of their exposure to risk. It is not as if Stiglitz was in control of the institution or encouraged that they engage in these more risky behaviors. It is more like a doctor performing a check-up on a patient, which represents a mere snapshot in time, saying they're in good health. And then the patient decides it's okay to start smoking, eating fastfood for every meal, and giving up exercise. Are you going to blame the doctor for not warning this could happen? I would say the stronger lesson is that continued checks and oversight are critical to the health of any institution or business. Though I do also agree and think people who make sloppy predictions should also be held accountable for their behavior.