Coming Credit Calamities

Today's Wall Street Journal finally and devastatingly puts a face (subscription required) to the degree to which debt has been irrationally underpriced and gives, in my view at least, cause for great concern.  It is too bad the article is relegated to the Op-Ed pages, but given the source (Steven Rattner at Quadrangle Group) it is hard to ignore nonetheless.  This path simply cannot continue, and, ironically, spreads have still slipped, even in the face of continually mounting, and what should be already formidable, opponents to sentiment.  Says Rattner:

No exaggeration is required to pronounce unequivocally that money is available today in quantities, at prices and on terms never before seen in the 100-plus years since U.S. financial markets reached full flower.