“The money men say it is over. The economists say it has just begun. And the politicians are loving every minute of it. Perhaps it all depends on what the meaning of the word ‘it’ is. To Treasury Secretary Hank Paulson ‘it’ is the credit crunch. ‘I am encouraged. I am feeling better about the markets. In terms of the capital markets, I believe we are closer to the end than the beginning. … The worst is likely to be behind us.’ Before you attribute that to the usual cheer-leading expected of a Treasury Secretary, consider the words of legendary investor Warren Buffett, ‘The worst of the crisis on Wall Street is over.’ What these money men have in mind is that the banking system is gradually deleveraging — writing down the rotten paper on and off its balance sheets, and replacing it with massive amounts of new, real capital.” (05/13/08)