‘Bubbles Just Don’t Happen’

More from Krugman:

In recent, rueful economics discussions, an all-purpose punch line has become “nobody could have predicted. . . .” It’s what you say with regard to disasters that could have been predicted, should have been predicted and actually were predicted by a few economists who were scoffed at for their pains. …  But there was something else going on: a general belief that bubbles just don’t happen.

via NYTimes.com.