Alan Greenspan: Japan in recent years has had to struggle back from the stock-market and real estate crash of 1990. Japanese banks became heavily invested in loans backed by real estate as collateral, as real estate prices soared. When the turn came and prices cascaded downward, the collateral became inadequate. But instead [...]
Scary Stuff from the lender of last resort
Paul Volcker: So I think we are skating on increasingly thin ice. On the present trajectory, the deficits and imbalances will increase. At some point, the sense of confidence in capital markets that today so benignly supports the flow of funds to the United States and the growing world economy could fade. Then some event, [...]
It started as I delved into what I should be doing with my 401k and some savings. After a lot of reading and fuming, once I had understood how wall street actually works, I decided to follow this learned man’s recommendations for investing.Wall street had been ripping me off. How it had been ripping [...]