Very interesting article on the New York Times web site titled "The Education of Ben Bernanke". It gives a nice timeline of all the salient financial events of the past 6 months starting with the speech Bernanke gave last May in which he uttered the following sentence:
“the effect of the troubles in the subprime sector on the broader housing market will likely be limited.” These words might one day rival these other fateful words: "Prosperity is just around the corner" (President Hoover, 1932) for what could be euphemistically called otherworldly lack of prescience.
For other gems from the Great Depression era, check this out. One from a very respected economist in his day: "There may be a recession in stock prices, but not anything in the nature of a crash." (Irving Fisher, September 5, 1929) but this one by same takes the prize considering it was delivered the day before the Crash: "Stock prices have reached what looks like a permanently high plateau." (Irving Fisher, October 17, 1929).
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