Quote of the Day

Filed in National by on March 31, 2009

From Paul Krugman’s op-ed on Friday.

But the wizards [Wall Street] were frauds, whether they knew it or not, and their magic turned out to be no more than a collection of cheap stage tricks. Above all, the key promise of securitization — that it would make the financial system more robust by spreading risk more widely — turned out to be a lie. Banks used securitization to increase their risk, not reduce it, and in the process they made the economy more, not less, vulnerable to financial disruption.

– Paul Krugman

Tags:

About the Author ()

A Dad, a husband and a data guru

Comments (1)

Trackback URL | Comments RSS Feed

  1. Unstable Isotope says:

    I <3 Krugman.

    Speaking of economic disasters, has anyone read this article about the financial crash in Iceland? It’s crazy!