Mr. John McCarthy:

I do, I certainly do. In my witness statement, which is why I asked where ... I do refer to the fact that the economics profession failed. And I think it failed in a number of aspects. I list them there - it's general ability to foresee the crisis ... sorry, it's on page 4 ... to even acknowledge that cataclysmic events were possible in a market economy. There was a general herd mentality, to use your own phrase; there was a general herd mentality on 'the Great Moderation'.

There was a belief that the business cycle had been permanently tamed - clearly wasn't the case - and there was also a failure to understand the linkages between the real economy and the financial sector.