Selgin on the Crisis
Since we have Selgin's piece up today, you might be interested in hearing his excellent lecture of the crisis and its origins here (minute 4 and forward). It is an excellent talk, and I'm particularly struck by his point that regulations have created a cartel in the market for credit-rating agencies. Only three firms can participate by virtue of SEC regulations, which helps to account for why even private markets didn't correctly rate the risk of sub-prime mortgages. Maybe others have made this point but this is the first time I've heard it.
Here is another interview with him on his book.
Comments (3)
eric lansing
if this were not so stupid it would be funny:
http://bloomberg.com/apps/news?pid=20601109&sid=aEUjmkEmRU8o&refer=home
de Gaulle was following the advice of Jacquess Rueff, who suggested converting paper dollars for US gold. I've read 4 of Rueff's books and he's nearly as libertarian as Mises.
Published: October 24, 2008 9:32 AM
Peter
A slight factual correction: there are five SEC-approved credit rating agencies (Nationally Recognized Statistical Rating Organizations or NRSROs). They are Moody's, S&P, Fitch, AM Best, and DBRS.
Published: October 24, 2008 11:56 AM
Inquisitor
The second guy seemed to be clamouring for "regulation"... very a-contextual presentation. Just bemoaning the "unregulated" nature of derivatives. Selgin was great though.
Published: October 24, 2008 3:28 PM