This is another look back comparing then and now. Is it possible that libertarian conservative economists have a tendency to be overly optimistic about capital markets? The argument is that the subprime issue <a href="http://www.portfolio.com/views/blogs/market-movers/2007/11/19/subprime-datapoint-of-the-day" _fcksavedurl="http://www.portfolio.com/views/blogs/market-movers/2007/11/19/subprime-datapoint-of-the-day" rel="nofollow" target="_blank">is not that big of a problem</a>.
Perhaps by its self but as part of the credit crunch problem it seems to be the last straw on the camel. One of the Marginal Revolution readers points <a href="http://bigpicture.typepad.com/comments/2007/11/the-big-threat.html" _fcksavedurl="http://bigpicture.typepad.com/comments/2007/11/the-big-threat.html" rel="nofollow" target="_blank">here for a rebuttal</a>.
Currently the subprime issue has spilled over into the commerical retail market so either it had more impact than appreciated back then or psychology plays a far larger role than I ever appreciated.
Public Stiky Notes
Perhaps by its self but as part of the credit crunch problem it seems to be the last straw on the camel. One of the Marginal Revolution readers points here for a rebuttal.
Currently the subprime issue has spilled over into the commerical retail market so either it had more impact than appreciated back then or psychology plays a far larger role than I ever appreciated.
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