It was pseudo caution. The finance industry saw that investors wanted to (in some cases, had to) buy conservative investments like AAA paper. They sold them a f

It was pseudo caution. The finance industry saw that investors wanted to (in some cases, had to) buy conservative investments like AAA paper. They sold them a fantasy of conservative investment. It was so compelling that the utterly ridiculous notion of that much AAA paper was ignored. After calling it 'excess of overcaution' he declared that it is leverage that causes crises. Leverage does not connect strongly with caution to me.