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The following quote is taken from the start the book, “This Time Is Different: Eight Centuries Of Financial Folly” by Reinhart and Rogoff: “The essence of the this-time-is-different syndrome is simple. It is rooted in the firmly held belief that financial crises are things that happen to other people in other countries at other times;… » read more

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As we now all know, the EU banks mostly passed their ‘stress tests’ with flying colours. But now there are calls for more. Should there be? The first round of stress tests struck me as odd. I have read repeatedly that US banks (which of course European ones have been modelling) had expanded their financial… » read more

Posted by financialguy

How far down can world markets go? A little background reading about falling markets and suggests that average falls are pretty big. Of course, as we all keep reading, the current situation is ‘unprecedented’ and ‘impossible to predict’. That is all well and good, but what about previous down markets, how big were they? According… » read more

Posted by financialguy

If we all make it through this financial nightmare, and lets hope that the financial system does not collapse completely sending society instantly into the Middle Ages, (no money equals no food, transport, utilities and who knows what else, leading to social unrest and mass disorder) can we survive the next big problem? This story,… » read more

Posted by financialguy