Quote of the Day: Paul Krugman Explains Credit Crunch

NYT columnist and economist Paul Krugman, explaining why the Fed’s repeated attempts to bail out speculators, the credit crunch, and the economy have failed:

What’s going on in the markets isn’t an irrational panic. It’s a wholly rational panic, because there’s a lot of bad debt out there, and you don’t know how much of that bad debt is held by the guy who wants to borrow your money.

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