Monday, March 30, 2009
Here's an article from the Huff post contending that Paul Krugman is dead wrong in his analysis of the economic meltdown. What the writer, Stewart "Bondad" Hale, argues is that while Krugman blames the introduction of securitization into the banking system for the debacle, in fact it's a perfect storm caused by a complex of causes including deregulation, poor oversight, questionable ratings, etc. It's an informative analysis, but I wonder if he is simplifying Krugman (who is no doubt simplifying his own message to make it media friendly) in order to "shoot him down". Seems to me Hale's claiming there's six eggs, while Krugman, half a dozen. Nevertheless, a worthwhile read to those of us in the dark about what many of these financial terms mean.