It could have been forseen because it had happened repetively with the South Sea Bubble, John Law's Speculations and the Florida land boom. There had been a similar frenzy but in the end, it collapsed. It was allowed to proceed w/o effective hindrance. Harding died in 1923 but he put Daniel R. Crissinger in charge. Despite the fact that he was as incompetent as Scott Fitzgerald would have been for the job. He was later put in charge of the Federal Reserve System where he had the power to take action, but didn't.
Hoover blamed the NY gov.(FDR) for not taking action, but he was the pres. and should have requested the power from FDR so he could solve the problems.
During Coolidge's presidency many men tried to warn him. For example, William Z. Ripley whom he listened to however, when he said that regulation was the responsibility of the states Coolidge took no action. Also, if it seemed the market was in trouble the president or Secreteary of Treasury would issue statements saying that the market was actually fine.
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