Bankers and Economists - Who Is More Dismal?

David Gross says mean things about economists, but he also points out that the bankers and financiers have their faults. Their many, many faults. Now, Nobel Laureate Paul Krugman weighs in with the opinion that, after their testimony the other day to the Financial Crisis Inquiry Commission, we should ignore anything the bankers say about their industry. They are clueless.

Are they really clueless, or are they trying to conceal their foreknowledge? I think it's probably some of both; they suppressed their uneasiness about some of their own actions by always hitting the positive note. That left them in a position where the crash had to come as a surprise. Which is the harder question:

1) Why didn't you know a crisis was coming?

or

2) If you knew a crisis was coming, why didn't you do something about it?