More Risky Business
Posted September 16, 2007
But we must understand that no one knows where this market turmoil will lead or where it will end. Lower interest rates cannot make up for the decline in asset pricing, at a time when foolish borrowers decided to borrow what they could not afford and foolish investors invested in what they did not understand.
While the Federal Reserve hesitates, we've run out of fools. The Fed must take into account the potential lrisks posed to economic growth by the new seismic tremors.
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