[오늘의 한문장] In Fed We Trust

Perhaps a better title for Greenspan’s book would have been the one that Bernanke chose for the book manuscript he set aside when he came to Washington: Age of Delusion: How Politicians and Central Bankers Created the Great Depression.

[오늘의 한문장] In Fed We Trust

As Keynes noted, one bet soundly considered is preferable to many poorly understood.

[오늘의 한문장] When Genius Failed: The Rise and Fall of Long-Term Capital Management

Not so its derivative contracts, because the parties on the other side would have to approve. Moreover, one of Buffett’s conditions was that the portfolio’s financing remain in place. As Rickards read it, Buffett would have to buy the portfolio company—that is, Long-Term Capital Portfolio, the Cayman Islands partnership.

[오늘의 한문장] When Genius Failed: The Rise and Fall of Long-Term Capital Management

August was the worst month ever recorded in credit spreads.25 In the past, such ballooning spreads had presaged an economic collapse. But this time, no depression threatened Main Street; perhaps a slowdown, but nothing more. The bond market collapse was caused by a panic not in the mainstream economy but on Wall Street itself, where too much optimism (and too much leverage) had suddenly come undone.

[오늘의 한문장] When Genius Failed: The Rise and Fall of Long-Term Capital Management

For four years, the brain trust in Greenwich had made money faster than anyone else. Now, like a movie that reveals an unsuspected horror on rewind, they were losing it incomparably faster. And then the unthinkable happened