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.
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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.
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.
The second guy seemed to be clamouring for “regulation”… very a-contextual presentation. Just bemoaning the “unregulated” nature of derivatives. Selgin was great though.
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