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Charles Munger and the current state of blame for the recession/depression

Charles Munger, right-hand man to Warren Buffett and No. 2 at Berkshire, recently gave a lengthy and fantastic interview for Stanford Lawyer.

Munger, who forewarned of the recession to some extent, sees options and derivative trading to inherently lead to unlimited leverage and essentially espousing the view that the recession has been caused by inadequate regulation.

This position of lack of regulation being to blame, the one most supported by the court of public opinion, is eloquently refuted by Niall Furguson in The New York Times.

It looks like America will see more regulation. Where this takes us is a much more difficult to forecast, but hopefully we can elect officals who have at least thought hard about these issues.

May 20, 2009 at 2:47 pm

--Stephen Chang

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