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2008/10/10

800 Years of Financial Folly

Carmen Reinhart

You might think this time is different, but as Carmen Reinhart has shown in this report it's just not true. If you read just one paper to get some perspective on the current financial crisis, read hers. The full paper (124 pages) is archived here.

virtual <-> physical - posted by Samium Gromoff - 10/10/2008 14:48:58
"Eight years..." appears to derive its conclusion from purely meta-level analysis, in the sense that it avoids mentioning physical economy issues at all, instead focusing on dynamics of capital flows, debts and notions like "period of euphoria". So typical for "market's invisible hand" people. And yet, somehow I find it easy to sympathise with the ex-Bear Stearns VP's conclusion.