Allan Sloan tells us in the new Fortune magazine that June 12 will mark the two-year anniversary of the financial meltdown, dating the ?nightmare? to the news of problems associated with two Bear Stearns hedge funds speculating in mortgage-backed securities.
In recapping the problems experts missed in 2007, Sloan notes:
What almost everyone (including me) missed two years ago is that the world’s financial system was a disaster-in-waiting. It was clear that housing prices, leveraged buyouts, and such were being driven by vast amounts of money looking for something to buy, no matter how idiotic.
What Sloan doesn?t mention is the most likely cause of ?vast amounts of money looking for something to buy?: an easy-money policy from the Fed. Perhaps he ought to read Thomas Woods? book Meltdown.
