The Looting of America’s Coffers

[Ravi]

Interesting piece about the perils of deregulation combined with bailouts...and a prediction from the 1990s about what would cause our next (current) economic meltdown

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?partner=rss&emc=rss