Is the Race to the Bottom a Good Idea?

In the Race to the Bottom, which was published in February of 2007, you discussed the cheapening of money that you saw during the pre-crisis period. I think we were very well prepared for the developments of 0708 and our concern over what was going on in the market was the reason. We had no idea about some prime mortgages and mortgage-backed securities. All we knew was that the world had become an unsafe place because of investor practices.