Markets are well into a massive repricing of both risk and asset prices but it has far to go outside the original subprime area, where repricing may have already run its course.... This of course will be a painful process and will be a considerable drag on economic activity. Unfortunately, it is likely to take several years. To house clean completely by the end of 2010 would be a reasonable target... By the end of this credit crisis, perhaps better defined as a sloppy-debt-issuing crisis, we will be lucky if the amount of write-downs does not start with a “T.”
~ Jeremy Grantham, Managing Director, Grantham, Mayo Van Otterloo, "The Minsky meltdown and the problem with quantery," Seeking Alpha, January 24, 2008
(Quote came from Grantham's quarterly letter to shareholders, January 12, 2008.)
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