But of course, this -- rescuing or not rescuing--is why the "crisis" is of such importance, as it threatens the basis of all securities trading-- the BIGGER FOOL theory.
"Economics" really isn't a branch of psychology. It really is concentrated history. The "threat" to the system is not actually in what portion of sub-primes are in default, or the rising portion of sub-primes in default; the threat is not simply a quantitative threat. The "crisis" functions as an index to problems of reproducing profit; the problems of reproduction appear in the financial markets as an inability to "roll over" paper, to recirculate existing and expanding debts. ----- Original Message ----- From: "Marvin Gandall" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Wednesday, August 29, 2007 8:01 AM Subject: [PEN-L] Regulating the financial lemons market Central banks should not rescue fools By Martin Wolf Financial Times August 28 2007
