All Commentary
Thursday, July 21, 2011

Financial Players Prepare for Worst Case


“Lawmakers in Washington are racing to reach a deal to save the country from defaulting on its debt, but on Wall Street, financial players are devising doomsday plans in case the clock runs out. These companies are taking steps to reduce the risk of holding Treasury bonds or angling for ways to make profits from any possible upheaval. And even if a deal is reached in Washington, some in the industry fear that the dickering has already harmed the country’s market credibility.” (New York Times)

Even a government-laden market is resilient.

FEE Timely Classic
“The Irresistible Force of Market Competition” by Israel M. Kirzner