Don Luskin thinks the subprime virus will be contained. (From last night’s Kudlow & Company.)
KUDLOW: Well if I were Gary Shilling, or if I were Barry Ritholtz, or if I were Dougie Kass…if I were one of those chaps, they would say that Armageddon is coming because of the subprime mortgage problem.
DON LUSKIN: Well, I just simply don’t agree. You know, I’ve got 55 institutional clients who are the best and the brightest, and half of them are organizing right now to raise money for new funds. They’re going to be vulture capitalist funds. They’re going to buy all the subprime stuff at 10 cents on the dollar. They’re outbidding each other to take this stuff out of weak hands and put in into strong hands. There’s so much money in the world. It’s going to absorb this problem, just like it’s absorbed all the others the last few years.