Kevin Drum makes the mistake of reading McArdle and writes “I have to admit that ‘gigantic earthquake in Japan’ was not on my list of possible flash points for the global economy. And in the end, I don’t think it will be.”

It certainly shouldn’t be, if only because Tokyo Earthquake is probably the most widely used wildcard in any sort of future/scenario planning. Sure, it was a low-probability event at any given time, but over longer terms it had a non-trivial likelihood of coming to pass. From financial markets to supply-chain managers, they all should have a file at hand marked Tokyo Earthquake, and the work — for people far away — now involves dealing with how reality diverges from what was planned. Maybe some international actors will be exposed as having neglected to answer this most obvious of what-ifs, but most will have worked through the possibilities.