Kass: We'll See More Casualties

Updated from 11:59 a.m. EDT

This blog post originally appeared on RealMoney Silver on March 13 at 7:55 a.m. EDT.

Credit is the lifeblood of economic and financial growth. With the benefit of hindsight, a relatively small group of brokerages and banks (which were already ill-positioned to confront an adverse credit cycle from a reserve standpoint) have poisoned the system with what Warren Buffett described as financial weapons of mass destruction. We now face the potential of a "black swan" event, a possible once-in-a-lifetime unknowable risk tied to a generation of credit and debt excesses as well as a dependency on an unregulated and unwieldy eruption in derivatives.

-- Doug Kass, "No Stock Recovery Without Credit Fix"

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