Sunday, 19 October 2008

More on the current financial problems

Brian M. Carney of the Wall Street Journal has report of a recent interview he did with Anna Schwartz. As Carney points out
Most people now living have never seen a credit crunch like the one we are currently enduring. Ms. Schwartz, 92 years old, is one of the exceptions. She's not only old enough to remember the period from 1929 to 1933, she may know more about monetary history and banking than anyone alive. She co-authored, with Milton Friedman, "A Monetary History of the United States" (1963). It's the definitive account of how misguided monetary policy turned the stock-market crash of 1929 into the Great Depression.
In addition there is a nice piece by Jeff Miron at on Why this bailout is as bad as the last one. Warren E. Buffett says Buy American. I Am. Kenneth Arrow comments on a Risky business
The root of this financial crisis is the tension between wanting to spread risk and not understanding its consequences

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