The Real Great Depression (Panic of 1873)

[sdduuuude]

This really is an excellent post. Thanks. Bump.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[DaCounselor]

“What’s truly changed is people’s attitude to debt. It’s no longer shameful

I wouldn’t say that.

I would say its the attitude of *defaulting* on debt that’s no longer shameful.”
__________________________

I would say it’s both.

I would also say that we are very likely to see a shift back toward an anti-debt sentiment.

[greekfire]

I have been searching for answers to our current problems quite a bit in the past couple years or so. I am convinced now, more than ever, that unless we know our history we are doomed to repeat it. I used to think this was a tired cliche, but it has won me over now. Nearly all of the problems that we are facing today have been faced before in our nation’s history in one form or another. We’d be wise to study our own history better because we are well into the process of repeating it all over again.

[greekfire]

I have been searching for answers to our current problems quite a bit in the past couple years or so. I am convinced now, more than ever, that unless we know our history we are doomed to repeat it. I used to think this was a tired cliche, but it has won me over now. Nearly all of the problems that we are facing today have been faced before in our nation’s history in one form or another. We’d be wise to study our own history better because we are well into the process of repeating it all over again.

[greekfire]

I have been searching for answers to our current problems quite a bit in the past couple years or so. I am convinced now, more than ever, that unless we know our history we are doomed to repeat it. I used to think this was a tired cliche, but it has won me over now. Nearly all of the problems that we are facing today have been faced before in our nation’s history in one form or another. We’d be wise to study our own history better because we are well into the process of repeating it all over again.

[greekfire]

I have been searching for answers to our current problems quite a bit in the past couple years or so. I am convinced now, more than ever, that unless we know our history we are doomed to repeat it. I used to think this was a tired cliche, but it has won me over now. Nearly all of the problems that we are facing today have been faced before in our nation’s history in one form or another. We’d be wise to study our own history better because we are well into the process of repeating it all over again.

[greekfire]

I have been searching for answers to our current problems quite a bit in the past couple years or so. I am convinced now, more than ever, that unless we know our history we are doomed to repeat it. I used to think this was a tired cliche, but it has won me over now. Nearly all of the problems that we are facing today have been faced before in our nation’s history in one form or another. We’d be wise to study our own history better because we are well into the process of repeating it all over again.

[EconProf]

Greekfire: your are sooo right.
And it wasn’t even very long ago. What is remarkable is how this crisis resembles the Long Term Capital Management moment of, I believe 1998. Then LTCM used extremely high leverage, a complicated and flawed economic model with innovative new tools, and even a Nobel-prize winning economist in their highest management. The whole structure was based on an assumption that success was nearly inevitable–only a 1 in 1000 probability of failure. Well, a black swan flew by, and they blew up.
I think their top guy was named Merriweather, and he recently was in control of a hedge fund that just collapsed. Basing this all on my flawed memory of news events, so if anyone can fill in the blanks please do.

[EconProf]

Greekfire: your are sooo right.
And it wasn’t even very long ago. What is remarkable is how this crisis resembles the Long Term Capital Management moment of, I believe 1998. Then LTCM used extremely high leverage, a complicated and flawed economic model with innovative new tools, and even a Nobel-prize winning economist in their highest management. The whole structure was based on an assumption that success was nearly inevitable–only a 1 in 1000 probability of failure. Well, a black swan flew by, and they blew up.
I think their top guy was named Merriweather, and he recently was in control of a hedge fund that just collapsed. Basing this all on my flawed memory of news events, so if anyone can fill in the blanks please do.

[EconProf]

Greekfire: your are sooo right.
And it wasn’t even very long ago. What is remarkable is how this crisis resembles the Long Term Capital Management moment of, I believe 1998. Then LTCM used extremely high leverage, a complicated and flawed economic model with innovative new tools, and even a Nobel-prize winning economist in their highest management. The whole structure was based on an assumption that success was nearly inevitable–only a 1 in 1000 probability of failure. Well, a black swan flew by, and they blew up.
I think their top guy was named Merriweather, and he recently was in control of a hedge fund that just collapsed. Basing this all on my flawed memory of news events, so if anyone can fill in the blanks please do.

[EconProf]

Greekfire: your are sooo right.
And it wasn’t even very long ago. What is remarkable is how this crisis resembles the Long Term Capital Management moment of, I believe 1998. Then LTCM used extremely high leverage, a complicated and flawed economic model with innovative new tools, and even a Nobel-prize winning economist in their highest management. The whole structure was based on an assumption that success was nearly inevitable–only a 1 in 1000 probability of failure. Well, a black swan flew by, and they blew up.
I think their top guy was named Merriweather, and he recently was in control of a hedge fund that just collapsed. Basing this all on my flawed memory of news events, so if anyone can fill in the blanks please do.

[Author]

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