http://www.lewrockwell.com/duffy/duffy11.html
Financial Markets on Crack
by Kevin Duffy
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How does today’s credit bubble compare to its 1998 and 2000 predecessors? Derivative exposure has more than tripled since 1998. And the balance sheets of the top 5 investment banks have nearly tripled since 2000. Structured finance was in its infancy 9 years ago and the collateralized debt obligation (CDO) market was just being invented. LTCM was a liquidity crisis; the current credit meltdown is a solvency crisis.
Cheap and plentiful credit is what caused the current mess. More of the same can only make it worse. It is only a matter of time before this shot of credit heroin wears off. Sometimes the best medicine is none at all.
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Yup, you don’t grab a falling knife. But it is tempting. Buying quality stuff at a discount is one way to make money in the market.
But, if the market is going over the cliff in an unprecedented fashion, does it matter if you are on the bus going over or just waltzing along.
Bottom line: You’re on your tush saying “what happened”.
Aigh! (Combo sigh and argh)
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Reinke Faces Life 