I am a little baffled by the article's thesis. There is very little evidence to support a "failure" of economics in the case of this current crisis. Several eco

I am a little baffled by the article's thesis. There is very little evidence to support a "failure" of economics in the case of this current crisis. Several economists (mainly Dean Baker) were able to see the housing bubble and to accurately predict that its burst would lead to a recession. I suspect the real failure being discussed in the article is the belief many at the Fed (especially Greenspan) had in self-regulating markets. Good arguments have been made that the lack of regulation was a major factor in creating the bubble-prone economy the US has had for 15 years (or more). So yes, in that respect, the "economic models" have failed. In reality, most of this was completely predictable and avoidable. I would again point people to Dean Baker as a great resource in understanding the crisis: http://www.youtube.com/watch?v=CrSrL0lBorE http://www.youtube.com/watch?v=CrSrL0lBorE