Knowledge-Power Discrepancy

I've still haven't quite grasped how "I don't know what will happen if we do X, but I do know it'll be better than if we do some Y which we do know about" makes sense.

Chicago and MIT both claim they know what happens when we do X, but if this is denied, well...

I can only hope this is explained more clearly in FP2P than it ever has been on this blog, because I'm popping into the library tomorrow.

"Social democracy rests on the premise that when something goes wrong, somebody -- whether the voter, the legislator, or the specialist regulator -- will know what to do about it. This is less ambitious than the premise that central planners will know what to do about everything all at once, but it is no different in principle"

Best line I have heard in a while, its something people don't realize... under a market system,when we have problems that no one knows the solution to, it is still people for them to be fixed.

and the discrepancy between the knowledge that market makers were implicitly assumed to hold and their actual level of ignorance

Friedman presents few more pieces of the puzzle. Can anyone tell me what the Obama administration is doing to avoid another financial meltdown?

The President claims that he has brought us back from the brink of the abyss. It seems that we have just made a turn, and that we are still running along the edge of the abyss. And, one eye is closed.

Fatal Conceit-Redux