“But it’s worth at least thinking about the possibility of a dollar bust. The reason the housing bust had such devastating consequences was a failure of imagination: Lenders, regulators, credit raters, and others simply couldn’t believe that house prices would ever fall the way they did, so they were blindsided. ” — Business Week
This quote talks about the need to contemplate what the U.S. might do if the dollar went bust; the idea is that it is so far fetched no one thinks about, so if happened the damage would be doubly extreme because of the massive lack of preparation. The quote cites the housing bust as falling into this category, precisely because no one in the industry even entertained the notion.
This intrigues me, because I think we miss the value of Roads Not Taken everyday.