Trillion Dollar Meltdown

In my previous 2 blogs I noted that author Charles R. Morris is the first writer out of the starting gate to tackle the issue of the "debt meltdown" in a head-on manner.

Here now is what Mr. Morris has to say about the current situation we face…

...the late 1990's saw the emergence of the "quants" on Wall Street – people with advanced degrees from Ivy League schools who practiced a very different brand of calculus, who could carve up old fashioned asset classes into new exciting creations.

...when these new creations were combined with the newly created Fannie Mae and Freddie Mac organizations the "pass through" mortgage was created. The concept of Collateralized Mortgage Obligations (CMO's) and Collateralized Debt Obligations (CDO's) soon followed. Read more »

In my previous blog I noted that author Charles R. Morris is the first writer out of the starting gate to tackle the issue of the "debt meltdown" in a head-on manner.

In this blog I offer you a glimpse of what he has to say about the 1980's and 1990's.

...the truth is that monetarisn (with its premise that money supply was the answer to all things) did not break inflation, Volcker did by using every possible weapon at his disposal including verbal jawboning.

... The demonstration of what America would do to protect its currency changed the world's impression of US economic management. Read more »