Things fall apart.

[davywavy]

I came across a quote a while ago. It was "Meanwhile the poison was still working its way to the heart of the banks”. Sounds contemporary, doesn’t it? The sort of thing that might have been written about the failure of the Dutch bank Dexia a few years ago, or the Italian banking system right now. But it isn’t. It was actually written about the

Comments

[anonymous]

There's a way to end all banking crisis. Separate demand deposits from bond funds.

[anonymous]

That was the situation in the late sixties and early seventies but it didn't prevent the srcondary banking crisis of 1972.

The world is not a simple place.

[anonymous]

I often* wish this sort of history was more widely taught / known. If nothing else I like to hope it would make crashes less severe and the aftermath less wild (though this is probably a vain hope given your analysis).

Though I can't claim to have anything like this depth of knowledge, what bits I have pritt sticked together in my head have at least made recent events less surprising.

* Occasionally when I'm reflectively pissed**
** As opposed to just seeing my reflection in the toilet bowl pissed

[philmophlegm]

Interesting post. I've friended you - hope you don't mind...

[danieldwilliam]

Hello - over here from AndrewDucker's Interesting Links.

Really interesting article.

I have a question. It looks to me that the economies of countries like China and India and some of the more vibrant African countries haven't been very much affected by the 2008 Great Crash. They, as countries and a general population seem to be doing well out trade liberalisation and globalisation. Not much downside for anyone in the way there is in the West. If that's the case how will China and India and co react to whatever the West tries to change the global paradigm? Particularly as this is probably the first since the late 1700 when those countries have been in the position to shape global institutions to suit their own needs.

[davywavy]

Quite seriously I have no idea whatsoever