Finance as the Discipline of Faith

Here is the economics columnist of The New York Times, Paul Krugman, on the cause of the recent financial crisis (Feb 15, '08):

Why has a crisis that began with loans to a limited group of home buyers ended up disrupting so much of the financial system? Because, ultimately, it’s more than a subprime crisis; indeed, it’s more than a housing crisis. It’s a crisis of faith.

There you have it: if only people had faith. The fault, dear Brutus, is not in our stars, but in ourselves.

A neo-liberal New York sophisticate is turned into a new born Christian – or is it Jew? – under the onslaught of events whose cause he does not recognize much less understand.

I will return with Part 3 of the "Credit Woes”.