Cochrane was trying to set the context of the crisis. He even notes that the credit crises was an effective run on the banks. For more, see Slapped in the Face

Cochrane was trying to set the context of the crisis. He even notes that the credit crises was an effective run on the banks. For more, see Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1401882 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1401882