Car Wrecks & Credit Markets
When I was in my twenties, I was in a pretty nasty three car pileup on I-95 heading south towards Florida (it happened somewhere in Georgia, don't ask me where). It was rainy, so people were going slow already, which is probably what spared my life. While I was in the car, and while I was spinning, completely out of control, watching other cars approach me and knowing there was nothing I could do about it, I felt as if time was in slow motion. I think that happens to us when things we can't control occur. Our brains slow down, everything appears to be moving at a snail's pace. That is precisely how I've felt over the last few weeks, even months, while watching the credit markets. Its as if things are moving in slow motion, but you know a wreck is about to happen. You can even see some of the headlights out your window now, GM, FNM, AIG, today's inflation numbers, all working to create a huge, slow motion, credit wreck. The only question remaining is, how fast were we moving when we lost control?