He had an excellent post on Sunday to explain his reasoning. It includes a one hour and thirty minute video by William Black, the former liquidation director who was in charge of investigating the S&L disaster.
Here's an excerpt - then get on over there sometime when you can pay attention for about as long as a bad movie - you'll be glad you did and will walk away with a much better understanding of why we're in the economic mess we are in today:
Sunday Lesson: Why "Normal" Will Never Return - The Market Ticker
Be warned - this is a long presentation, lasting more than an hour and a half. It is worth every minute of your time and is in fact essential to understanding both what happened and more importantly why the economy cannot recover on a durable basis.
Note that one single bank, IndyMac, lost more money than all of the S&Ls combined.
Folks, the key "take away" here is what is called "control fraud." In order for trust to be restored - that is, in order for markets to function normally, this fraud must be eradicated from the system so that normal levels of business trust can be restored.
It hasn't been.