"Bankers -- and the rating agencies -- believed in financial alchemy. They thought that financial innovations could somehow turn bad mortgages into good securities, meriting AAA ratings. . . . Worse, banks failed to understand the first principle of risk management: diversification only works when risks are not correlated . . . "
- Joseph E Stiglitz, Economist
No comments:
Post a Comment
Because all comments on this blog are moderated, there will be some delay before your comment is approved.