The problem with the new instruction sheet was that by seeing only equilibrium and efficiency arising out of the trading decisions of supersmart actors, it ignored the possibility of a crisis arising from any source apart from moral hazard or some large exogenous and usually state-induced political shock. It simply could not imagine that the meshing of elements that were each intended to make the world safe, such as mortgage bonds, CDSs, and banks’ risk models, could make the world astonishingly less safe.

Mark Blyth, Austerity, loc. 130