Monday, October 06, 2008
My thanks to bleak and Captain Capitalism for appearing on the Final Word this weekend. �You will want to listen to the podcast if you missed it, as the discussion of the housing crisis was as interesting as I hope my morning talk with David Strom and Margaret Martin was. �Different, though, as Aaron (CC) is certainly more opposed to the bailout bill than I and, it turned out, bleak were. � (I disagree with that last link, but I'll save that for another time.)
If you liked Aaron's radio appearance, do pick up a copy of his new book, Behind the Housing Crash. �The book blends anecdotes of his work in the financial industry with a very libertarian view of economics and finance. �Why did financial firms continue to lend money when their valuation methods told them the riskiness was high? �Because, quite simply, they stopped believing the models and believed that prices always go up. �Once you decide that, it is only a matter of time before new financial firms or new financial instruments pop up to provide fuel for the mania. �Aaron provides several stories from within the financial sector of how the mania spread, and for this the book is highly useful.
While giving thanks, you would perhaps also enjoy The First Team's handiwork in creating attack ads. �Credit goes to the Fraters, who did this for both the other two shows. �These are obviously having a very negative effect on my re-election chances for MOB mayor. �Just desserts will be served.