R Carlson

It's a Collateral Crunch, Not a Credit Crunch

I think it might be better described as a world awash in easy credit. (Thank you Mr. Greenspan, Japan, China & OPEC.) With all that money sloshing around, it has to go somewhere. The unique factor of the last decade is that it sloshes into asset markets, not goods and services. Having been suckered into bad housing credits by idiot rating agencies , the credit tidal wave is pulling back from housing, but where will it slosh next? Repeat: it has to go somewhere.

Richard Calrson, Chairman, Spectrum Economics, Palo Alto, CA