Into sub-prime, CDOs and the like.
I’ll admit to only having skimmed it, nothing very new in it.
What I didn’t see in it though was the thinking behind the whole system: to spread risk. And, as Alex Tabarrok points out, at speading the risk the system was actually very good indeed.
3 responses so far ↓
1 Matthew // Apr 8, 2008 at 1:08 pm
It wasn’t that good, was it? The Economist etc told us for the last few years that it’d spread risk so well there was nothing to worry about, but in fact it seems to be mostly concentrated in the banks.
2 Dan // Apr 8, 2008 at 4:15 pm
It seems to have spread the risk quite well, Matthew, though perhapsd not in the way it was sold. I’m currently picking up a share of the tab for the risk the Northern Rock took, after all.
3 Matthew // Apr 8, 2008 at 5:18 pm
Yes, exactly! Very good.
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