Monday, January 26, 2009

"Six errors on the path to the financial crisis"

Here. Here. The mess we're in was the direct product of human folly - not some unforseen natural disaster. Very short opinion piece by Alan Blinder. Summarized:
  • Derivatives unchecked
  • Mind boggling leverage
  • Decline in lending standards + regulatory gaps
  • Belated response to foreclosure surge
  • Letting Lehman fail
  • TARP's inconsistencies

That we could muster collective stupidity on such a level is the surprising thing. Not that it all fell to pieces.


Deadhedge said...

I read an article that had similar conclusions in the Wharton Journal be Jeremy Siegel (sign in might be required.
Hopefully my tinyurl works


Anonymous said...

Chicago is a business school full of nerds. Horrible school for anyone who is seeking the complete MBA experience.

H/S/W are better schools.

MaybeMBA said...

Deadhedge - good article. I'm off to start a bank now ...

Anonymous - were you trying to find the Business Week forums? Better luck next time.