Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previously unrecognized borrowing capacities.

This decade is strewn with examples of bright people who thought they built a better mousetrap that could consistently extract abnormal returns from the financial markets. Some succeed for a time. But while there may occasionally be mis-configurations among market prices that allow abnormal returns, they do not persist.

The need for values is inbred. Their content is not.

The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion.

By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives.

There is no evidence that the business cycle has been repealed.

I'm a better economist than I was a sax player.