Kahneman on the Crash
By Bryan Caplan
Many people now say they knew a financial crisis was
coming, but they didn’t really. After a crisis we tell ourselves we
understand why it happened and maintain the illusion that the world is
Economists have a mystique among social scientists because they know mathematics. They are quite good at explaining what has happened after it has happened, but rarely before.
Still, I can’t agree when he says:
In fact, we should accept the world is incomprehensible
much of the time.
Given Kahneman’s amazing track record of intellectual contributions, I don’t think he really believes this either.