Of, by, and for the Bondholders

When in trouble, bondholders have always looked to Washington for relief.

By Daniel GrossPosted Saturday, April 11, 2009, at 7:16 AM ET

At a conference last week on the panic of 2008, a group of distinguished academics tried to puzzle out the meaning of the tumultuous events of the past year. Sitting in the Moot Court Room at the George Washington University Law School, I listened to people who possess more degrees than me struggle mightily to shoehorn the bewildering facts into the accepted model and theories that are supposed to govern our world. Efficient markets? Rational actors? Regulatory capture?