Wednesday, August 15, 2007


Lots of this today as every asset manager in the known universe has a theory of why the credit crunch has happened and what will happen now that its here.

The problems will continue, and, as in the dot-com bubble, all the excesses will in hindsight found to be egregious and unwholesome..."greed" some will say. "Indictment" will be uttered by the government against selectively chosen transgressors (under the oft-utilized "the more publicly known, the better" criteria).

I expect international (especially emerging market debt) spreads to blow out a bit as well, effecting equity markets further. Credit crunches are sticky.

But. Soon, very will be time to go the other way.

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