Saturday, March 08, 2008
The subprime crisis in historical contest
Posted by David Smith at 04:00 PM
Category: Thoughts and responses

This is a rather good speech by William Poole of the St. Louis Fed. It argues that subprime followed a long tradition of financial innovation, in which there is a tendency for that innovation to go too far, then face a painful correction. Lessons have been learned, and in time subprime will make a comeback, he argues. He also suggests we are a long way from a re-run of the Great Depression. The speech is here.