I would, however, hesitate to endorse the opinion that the Fed should have had, a few years ago, a baseline scenario that incorporated a possible bursting of the housing bubble and disruptions in financial markets, and that it should have conducted monetary policy based on the scenario.
I have already mentioned the pitfalls of reliance on subsidies and other market distortions. Financial literacy. I believe it is also our duty to educate the public in financial matters to enable them to make informed decisions about their financies. Dangers of Fast Money Schemes.