A must read
-----Original Message-----
From: David Farber
To: ip
Sent: 9/20/2008 6:29 AM
Subject: [IP] Nice reading -- Diamond and Kashyap on the Recent Financial Upheavals - Freakonomics - Opinion - New York Times Blog
http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-
the-recent-financial-upheavals/?em
September 18, 2008, 10:04 am
By STEVEN D. LEVITT
As an economist, I am supposed to have something intelligent to say
about the current financial crisis. To be honest, however, I haven't
got the foggiest idea what this all means. So I did what I always do
when something related to banking arises: I knocked on the doors of my
colleagues Doug Diamond and Anil Kashyap, and asked them for the
answers. What they told me was so interesting and insightful that I
begged them to write their explanations down for a broader audience.
They were kind enough to take the time to do so. In what follows, they
discuss what has happened in the financial sector in the last few
days, why it happened, and what it means for everyday people.
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