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.
Source link: http://archive.mises.org/8842/selgin-on-the-crisis/