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[...] In October, it was like a patient having a heart attack: the short-term credit market ceased to function. That’s the heart of our economic system; it ceased to function. The government was like the doctor. The government runs into the heart attack patient’s house, steps over the heart attack …

[...] bubbles create other bubbles, they’re like derivative bubbles, so to the extent that there was a bubble in credit or a bubble in the mortgage market, that created a bubble for people who could trade those products. There was just a misallocation of resources not only into mortgages, let’s say…

[...] This was a year where any trade you had on that other hedge funds had on, that was a popular hedge fund trade, performed poorly because there were other hedge funds that were forced to unwind that trade. [...]

Meanwhile, the U.S. government has extended so much aid to various other sectors of the economy, and it’s expected to have to do more, that now people are worried about U.S. credit. To buy credit protection on U.S. government debt now costs you more than to buy credit protection on Campbell’s soup!…

This is not a crisis that was caused because there was a drought, or because a meteor hit London and obliterated it, or because there was a war that destroyed productive capacity. This is because there was a misallocation of resources, because people had too much of that neurotransmitter in their b…