Crisis kills forecasting and classic theories of economics

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3. Her Majesty the Queen has enquired as to why nobody predicted the recent financial crisis. Provide her an answer.

Crisis kills forecasting and classic theories of economics

Economy goes in cycles - it is an absolute truth, known by both common people and the experts of this field. In good times, one should prepare for the bad period, and after the poor times, always comes the upswing. However, looking at the comments on the current crisis, it looks like majority of people forgot these general principles. Moreover, even some professionals of economics were hold to mockery by their colleagues, when they had published the forecasts and predictions of this crisis in 2006 or 2007. Many people felt like the crisis suddenly came from nowhere - unpredicted and unexpected. However, it was not so, and the enquiry of Her Majesty the Queen herself, as to why nobody predicted the recent financial crisis, is badly put altogether. The correct question should be - why nobody believed that financial downswing would come and that it would be so intense.

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