This story is embarrassing, yes. But it's most embarrassing for the Times and other believers in the idea of clairvoyant, all-powerful discretionary regulators. It's not at all embarrassing if you think Fed officials are as human as the rest of us -- and that safety comes from better rules of the game, not finding just the right soothsayer to run the show.The rest of the post is worth reading too.
Sunday, January 15, 2012
Economics and Clairvoyance
John Cochrane has an interesting post in which he concludes: