First forecasting … and then denial

Ben Bernanke was asked in 2005 about the possibility of fall in housing prices in America. He said: “It’s a pretty unlikely possibility. We’ve never had a decline in house prices on a nationwide basis.”

We know what happened later.

When the house prices started falling in 2007, he further added, “The impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.”

First came a forecast, which went horribly wrong and then came a denial that this is not e problem.

As Lao Tzu has said, “Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”

#RidingTheRollerCoaster – 188

 

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