Can you imagine Captain Edward John Smith's reaction the day before the Titanic hit the iceberg if a steerage passenger had asked him, "Um Capt'n, I have to wonder if steaming past these icebergs at flank speed is a good idea"? At best, the Captain would have been dismissive of the passenger's question.
Can you imagine if you could speak face to face with Fed Chairman Ben Bernanke, and were to ask him, "Is devaluing an unbacked paper currency really a good idea"? Based on how dismissive Mr. Bernanke is of U.S. Congressmen's questions, I think we can assume he would likewise dismiss anything you and I might ask him.
I have asked several experts in the financial field, "Aren't we going to face another financial crisis because we haven’t solved any of the things that caused the previous crisis"? They have been quite dismissive of my question.
I find that strange, especially when people inside their own industry are talking about another financial crisis as a real possibility. For instance, according to Bloomberg, "Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous one haven’t been resolved."
The people in charge of the financial system apparently don't see any risk on the horizon that they can't handle. Their unabashed confidence has me worried.