4 ms·

Felix Salmon unquestionably knows what he's talking about.

• CPLX 8y ago
  This comment should be higher. Felix is arguably the most respected and level headed financial reporter in the country.
• gimmeThaBeet 8y ago
  I'm not going to make a snap judgment based on one article but his last line: >Prudential could be forced to start liquidating its assets at fire-sale prices, which could set off a chain reaction in the rest of the financial markets and even the economy as a whole. Makes me question that. He gets through all of his scenario without once mentioning the Orderly Liquidation Authority, which despite the Dodd-Frank rollback is still in the toolbox, and is this is basically exactly what it was made for. So to be blunt, imo best case he's made a critical error of omission, unintentional or otherwise. And this is not to say it's a sure thing. It's the government. It would be far from perfect, it would be far from clean, but most everyone involved is on the same page in terms of what we don't want happening, which is more than I can say about most things. Of all the things that the crisis taught us and we have in fact learned from, is that failure of a large financial institution is terrible; an uncontrolled liquidation of a failed financial institution is way worse.