That they are oblivious is irrelevant.
Why would you think they would have a handle on the details of collateralized debt obligation products and their blow-up?
It doesn't change the magnitude of the problem.
There
is blood on the streets. It's on Wall St. Had this aspect of the implosion not been dealt with, the next rupture would have been a carotid artery and that would have not only overwhelmed Wall St. but, overwhelmed Main St. with blood.
Blook will be running on Main St. It just doesn't begin in earnest until next year.
To add an anadotal regarding "Grandma and Grandpa," my mother lives in a senior community. I would say their retirement incomes are a little above "ordinary" as is their grasp of the world. They are worried about their pensions and fixed income investments as well as the rise in energy and food costs.
Ignorance may be "bliss" but, it' still ignorance.
Edited by milbank, 22 September 2008 - 09:32 AM.