As we sink into the muck of what looks like a bad recession, the financial structuring geniuses and government leaders who enabled them keep doing a neat tap dance. They conveniently continue to blame a subprime-induced credit crunch for all this impending travail.  Yes, financial gridlock has been caused by all those poor people who really couldn’t afford homes in the first place and who shouldn’t have taken out those subprime mortgages. Yes, it was poor people, striving for something beyond their limited means, who precipitated all those problems with highly leveraged bonds, backed by those bad subprime loans. And now, everyone is scared to invest in anything.   

And then there is the solution, if we only can get  liquidity back and get investors to start buying stocks again, and the bull market resumes, and we can start doing lots of deals with more cheap debt (thank you Fed for low interest rates), and make lots of fees from doing all those transactions, everything will be great again.  It’s the credit crunch, darn it the credit crunch.

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