

Can't grasp credit crisis? Join the club. - wumi
http://www.nytimes.com/2008/03/19/business/19leonhardt.html?pagewanted=1&ei=5087&em&en=ab4caf3befa3e1c9&ex=1206072000
"All these investments, of course, were highly risky. Higher returns almost always come with greater risk. But people — by “people,” I’m referring here to Mr. Greenspan, Mr. Bernanke, the top executives of almost every Wall Street firm and a majority of American homeowners — decided that the usual rules didn’t apply because home prices nationwide had never fallen before. Based on that idea, prices rose ever higher — so high, says Robert Barbera of ITG, an investment firm, that they were destined to fall. It was a self-defeating prophecy."
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david927
Did you have your fingers in your ears and your eyes closed waiting for this
to happen for a while now? Join the other club.

