the rational expectations school would claim that as soon as there is a decline in demand the people who lost their jobs would get another job right away and accept lower pay. clearly this is not the case at the moment does the current situation disprove that argument.
Rational expectations would expect one to believe the "wall street scum" (not my words but common usage) would be tax cheats, but you seldom hear of tax cheats on the street, usually the tax cheat holds political office. I' mean c'mon, insider trading front running, etc they all pay their taxes. Sort of patriotic wouldn't you think?