From The Guardian:
A group of eminent economists has written to the Queen explaining why no one foresaw the timing, extent and severity of the recession.
The three-page missive… was sent after the Queen asked, during a visit to the London School of Economics, why no one had predicted the credit crunch.
What did they come up with? The explain that
the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole.
Sounds perfectly plausible. The question is, what would help improve that collective imagination?