... Mid-1 985 through Mid-2005 Swings Were Mild.
Real GDP
040200 989 694929 088 8 684 8 280 787 6747270 686 6646260 585 65452
it is not the time to dream of punishing the guilty. Central banks must
overcome their ... expand their def-
inition of excess if they want do better going forward.
The Markets Stoke the Boom and Bust Cycle • 23
6 • T
HE
C
OST OF
C
APITALISM
Figure 1.2
0100...
... excessive
uses of risk and concentration of investment. And the interplay of these
two flaws explains each of the major economic declines of the past
25 years.
In summation, the savvy analyst must be of two ... competition
from the new commodity, the new technology, the new source
of supply . . . which commands a decisive cost or quality advan-
tage and wh...
... kick
the football through the uprights and join the crowd of believers. And I
hem, Doc, and I haw. And, I twist and turn. But the crowd grows more rest-
less, and her gaze is enticing, and I ... in
terms of global savings. I saw it as easy money emanating from the
130 • T
HE
C
OST OF
C
APITALISM
to the powers of the computer and the cell phone, and env...
... been tied to the stock market. . . . The risk is that
200 • T
HE
C
OST OF
C
APITALISM
10 080 6040200 989 694929 088 8 684 8 280 787 6747270 686 6646260
11
10
9
8
7
6
5
Share (%)
Where Might the Estimates ... occurred
outside of Toronto, at the end of a holiday weekend in 19 98. At the
conclusion of a hockey tournament, I was driving my eldest son and
One Practitioner’s...
... More simply, the roots of the 20 08 financial markets crisis can be
found in mainstream economic theory and in the mathematical archi-
tecture of modern finance. Accordingly, economic theoreticians ... capital markets and the strong growth that they financed
gave rise to the long string of successes that were celebrated through-
out the 1990s and into the middle ye...
... need to expand their def-
inition of excess if they want do better going forward.
The Markets Stoke the Boom and Bust Cycle • 23
Figure 2.1
040200 989 694929 088 8 684 8 280 787 6747270 686 6646260 585 65452
15
10
5
0
−5
Year ... crisis, the collapse of Japan Inc.
after the stock market crash of 1990, the Asian crisis of the mid-1990s,
the fabulous technology boom/bu...
... gone bust
and the bank now owns the home. But the loan was for $ 588 ,000, and
the house is worth $5 38, 000. If lots of home loans go the way of
Hanna’s loan, then the total value of the bank’s ... figure out the general pattern of the investment cycle that defines
their world. In this Never Never Land, how would the ups and downs
of the financial world com...
... excessive
uses of risk and concentration of investment. And the interplay of these
two flaws explains each of the major economic declines of the past
25 years.
In summation, the savvy analyst must be of two ... with the Dow no
higher in the summer of 1 982 than in the fall of 1971. This presented
a quandary. Low inflation was a reason to be optimistic about...