The clip below from the Frontline episode (Inside the Meltdown, February 17, 2009) tells the story of the September 2008 Wall Street crash with the added clarity that a few months of hindsight brings. Letting Lehman Brothers go over the falls has to rank as one of the most disastrous decisions in the history of modern finance capitalism. Everyone with a stake in world capitalism (effectively everyone) will be feeling the real -- not the moral -- hazard of Paulsen's choice for a long time to come. While most of the larger media organizations decided to take a broader view of the origins of the financial crisis, Paul Krugman's column that week correctly zeroed in on the specific consequences of the Lehman decision in real time. The graph above shows the representative damage done to $10,000 theoretically invested in a relatively conservative investment vehicle. It puts the boss in a a mood to revisit the lost ending of It's a Wonderful Life.
Thursday, February 26, 2009
Marking the End of RRSP Season
The clip below from the Frontline episode (Inside the Meltdown, February 17, 2009) tells the story of the September 2008 Wall Street crash with the added clarity that a few months of hindsight brings. Letting Lehman Brothers go over the falls has to rank as one of the most disastrous decisions in the history of modern finance capitalism. Everyone with a stake in world capitalism (effectively everyone) will be feeling the real -- not the moral -- hazard of Paulsen's choice for a long time to come. While most of the larger media organizations decided to take a broader view of the origins of the financial crisis, Paul Krugman's column that week correctly zeroed in on the specific consequences of the Lehman decision in real time. The graph above shows the representative damage done to $10,000 theoretically invested in a relatively conservative investment vehicle. It puts the boss in a a mood to revisit the lost ending of It's a Wonderful Life.
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