Jun 23, 2008

Kevin Duffy on the causes of the credit bubble

The bubble has been created by two forces. First, you have the central bank baiting the hook by driving interest rates through the floor and making credit irresistible. Then you have the bankers and borrowers taking the bait, creating the cheap money that fuels the bubble.

~ Kevin Duffy, Bearing Asset Management, "Setting a Course With Bearing Asset Management," Motley Fool, April 11, 2007, by Matt Koppenheffer

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