July 19, 2010

Score one...

...for my brother-in-law on easy money being the cause of the financial crisis. Capitalism always produces asset booms & busts, but what was different this time was that money market funds, of all things, nearly crashed and burned. That was something new and was related ultimately to the securitization of debt, debt that somehow wangled a primo rating from the ratings agencies. (Rating agencies like Moody's are to companies what stock analysts are to stocks - lagging indicator. They tell you a company is in trouble or doing well after the fact.)

There's a rough justice, by the way, that Dems are not getting credit for what didn't happen - a depression - when Repubs never got credit for what didn't happen during the Bush administration.

Meanwhile Larry Kudlow on CSPAN this morning said he now questions his support for TARP.

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