Hindsight is quite a powerful ability, but foresight, now that is the stuff rock scientists, charlatans and economists.
For every time you have had a conversation in the past year or two regarding, “Did you see it coming?” in regards to the Great Recession of the prior decade, don't worry, you are not alone.
Recently released transcripts of the Federal Reserve’s eight 2006 Federal Open Market Committee meetings showed that the central bank completely missed the oncoming housing bust. Yes, that includes Chairman Ben Bernanke, who did not anticipate the Great Recession.
So, if you are one of those individuals who 'didn't see it', aside from the massive damage and disruption 'it' caused to your life, your business and likely your spirt, you are not alone. Matter of fact, you are in great company, which includes Ben Bernacke, me, you, and an awful lot of our fellow Active Rain members.
But wait, there's more. Time.com reported. “I think we are unlikely to see growth being derailed by the housing market, but I do want us to be prepared for some quarter-to-quarter fluctuations,” Bernanke said in his first meeting as chairman. Good to know that quarter-to-quarter fluctuations equates to ONLY the loss of more than 8 million American jobs during The Great Recession, which economists say was the worst economic crisis since the Great Depression.
So, next time you are thinking, “Geez, I should have seen it coming” take heart in that No, you should haven't.
Michael Hobbs, PahRoo Appraisal & Consultancy
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