Economic guru Ben Stein has published his thoughts on what we have all learned from the recession. He writes that with the explosive upturn in the stock markets and the unbelievable crash and rebound of China, there are some self evident lessons that we can take with us to prevent another near economic disaster.
First he makes it very clear that economic forecasting is nowhere near an exact science and extremely tricky to get right. He points to the fact that the vast majority of economic forecasters didn’t see the severity of the recession coming. They said that at the worst it would be a mild blip on the screen.
Stein writes what should be of concern too is the fact that many top forecasters said that it would go on indefinitely and that it might even turn into something akin to the Great Depression. Stein goes on to say that the amount of deception and lying that came out of the financial sector in general and particularly the banks has been worrisome. He said they lied specifically about the kind of risks they were taking.