I think a lot of major players are going to use the “could not forsee” ploy as best they can over the next year. Aren’t Mozilla and and a host of other super bonusing CEO’s getting put to a hearing as we speak?
Perhaps the Bond Market, which I know very little about, could not mathematically forsee the coming contraction, but I bet the regulators could have and should have.
As for your last paragraph, I totally agree. I suspect, however, that I agree because I am very well positioned for that scenario (stable job, no debt, lots of savings). I worry those of us who are well positioned for a deflationary event are too few. That MOST voters in this country are the opposite (high debt/ low savings). If so, right or wrong, the politicians that will guide the next steps may well go with popular demand. This is my fear.
I am hoping that it will not matter… that this deflationary contraction is going to happen…no matter what the FED or the Govt does.
