The subprime crisis "was a wreck that could have been predicted," Wharton finance professor Jeremy Siegel says in this interview. Siegel is one of seven Wharton professors interviewed by Knowledge@Wharton for this special report on the credit crisis.
An edited transcript of the conversation follows.
Knowledge@Wharton: Some people have described the subprime meltdown as kind of a perfect storm, with a combination of events that don't happen at the same time very often -- and that was rising interest rates, falling home prices and incomes sitting still. Other people think that this was predictable and that the financial institutions that were writing subprime loans and other risky kinds of loans were just ignoring the risks. Was this an unpredictable perfect storm, or not?
See full Interview.
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