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

Selgin on the Crisis

October 24, 2008 by

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.

{ 3 comments }

eric lansing October 24, 2008 at 9:32 am

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.

Peter October 24, 2008 at 11:56 am

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.

Inquisitor October 24, 2008 at 3:28 pm

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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