“The global financial crisis that began in the United States in the summer of 2007 was triggered by a bank run, just like those of 1837, 1857, 1873, 1893, 1907 and 1933.” That’s the theme of Yale economist Gary Gorton’s Misunderstanding Financial Crises, Why We Don’t See Them Coming, published last year by Oxford University Press. Students of financial crises will tell you that Gorton’s theme is highly relevant to the next meltdown we could face someday soon. Continue reading
With Mr. Rickards, this is what a full-blown currency war waged against the United States, initiated by China, might look like. What’s more is that we’re closer to this actually happening and it doesn’t stop with just a currency war.