“Risk Assessment” Revisited

[Last August President Bush strolled into the Rose Garden and told investors to stay calm. Owners of derivatives built from subprime mortgages merely needed a little time for "risk assessment." Sounded like trouble to us, as indicated in this post.]


We should have known from the start. The bears have left the campgrounds and headed for Wall Street.

The morning after the Dow's first 3% drop, President Bush and his economic advisers marched out to urge investors to stay calm. Why so much fuss over a 3% drop, not even a third of the way to a market correction?

Did the White House know something the rest of us did not?

Continue reading here . . .