Bailouts lead to Looting
Excellent article....
http://www.nytimes.com/2009/03/11/business/economy/11leonhardt.html
Quote:
Mr. Akerlof and Mr. Romer finished writing their paper in the early 1990s, when the economy was still suffering a hangover from the excesses of the 1980s. But Mr. Akerlof told Mr. Romer - a skeptical Mr. Romer, as he acknowledged with a laugh on Tuesday - that the next candidate for looting already seemed to be taking shape.
It was an obscure little market called credit derivatives.
http://www.nytimes.com/2009/03/11/business/economy/11leonhardt.html
Quote:
Mr. Akerlof and Mr. Romer finished writing their paper in the early 1990s, when the economy was still suffering a hangover from the excesses of the 1980s. But Mr. Akerlof told Mr. Romer - a skeptical Mr. Romer, as he acknowledged with a laugh on Tuesday - that the next candidate for looting already seemed to be taking shape.
It was an obscure little market called credit derivatives.