John Mauldin's weekly newsletter is a must read as always. This time he titles it Economists are still clueless. He rants about how economists failed to predict the crisis totally.
However, my problem is not that the economists failed to predict the crisis, nor it is that they have been repeatedly failing at it. My problem is that economists still do not understand how economic systems work. The present economic model has serious gaps that fail to even indicate a remote possibility of an interlinked financial system, etc.
There is serious difference of opinion among economists about how economics actually works. And this makes it less of a science than an art. No doubt there are large number of variables involved in the process, the problem is that these variables have inter-dependencies that economists themselves are not aware of.
I believe the basic model I have proposed in Subverting Capitalism - that of bargaining power within a transaction based economy is better alternative to map economics as a whole. Secondly, I believe my model will take us towards a coherent view of micro and macro economic study rather than the difference we see today.