Merritt, It is difficult for a Wharton man to credit Princeton with anything, but that was a good piece. Leverage, the result of easy credit, is a major villain. The author missed out on savings rates, asset inflation and trade deficits, which are also culprits, but, then he isn't writing from The University of Pennsylvania, so he can't see everything. <G>
I loved his line, it is not shorts that cause the problem, it is liquidation of the longs. I don't know if I believe that, but I will keep it in mind as events unfold.
MB |
