Have you seen the minutes released from the Fed meetings before the housing bust?
Guys like Bernanke and Geithner did not have a clue what was coming. It's on the record.
The two most powerful government economists presently in America had virtually no idea of the severity of the housing collapse as it began to unfold.
And it is obvious why governments prefer Keynesian, big government spending to Austrian School, small government, fiscal frugality.
Bigger governments means more money, more buraeucratic jobs and more power.
Austrian School means less of all of the above.
No wonder Washington loves Keynes.