I heart Paul Kedrosky

If you don’t read Infectious Greed, well, you ought to. I agree with him here:

Second, this has nothing to do with naked short-selling. Repeat after me: The trouble is not with short-sellers. The trouble is not with short-sellers. The trouble is with an over-levered financial system built on a house of cards comprised of under-collateralized toxic paper that was applauded all the way up by “housing is the American dream” nutters who couldn’t see that vast expansions in thinly-traded credit are a path to economic ruin. Focusing on the short-sellers will lead to completely wrong and counter-productive non-solutions to the current crisis.

Course, this doesn’t really point to a way out of the thicket, but self-awareness is at least a bold marker on the path to self-enlightenment.

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