Wile E. Coyote markets

Paul Krugman on the market collapse:

My general comment on the markets, however, is that financial markets obey the First Law of Cartoon Physics:

Any body suspended in space will remain in space until made aware of its situation.

Hence my discussion of a Wile E. Coyote moment for the dollar. But it’s not just the dollar: subprime-based securities seem to be having their own Wile E. Coyote moment. Everyone seems to have looked down, noticed that there’s nothing holding them up, and whoosh!