Digitalics

Tainted Water

April 16, 2008 at 12:25 pm Leave a comment

Quote of the Week: Paul O’Neill, former Treasury Secretary, is asked by the NY Times how the subprime problem could have escalated so far out of control. He alludes to how AAA-rated bundles of mortgage securities became untouchable when he says

If you have 10 bottles of water, and one bottle had poison in it, and you didn’t know which one, you probably wouldn’t drink out of any of the 10 bottles.

I certainly wouldn’t. Neither, apparently, did the market.

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