Hence, we end up with an understandable but somewhat irrational fear of what already occurred and not what might come in the future.
Long-Term Capital Management’s catastrophe -- a highly leveraged hedge fund trading illiquid securities -- was a forewarning about risk management and ramping up capital 40-to-1 times. But it hardly was a prescient warning about securitized subprime loans and derivatives.
I bet you can guess most of the people behind the following imminent anxiety-inducing claims:
* Automobile credit as the new subprime.
* 1987-like crash
* Collapse of the dollar
* Hyperinflation
* Secular stagnation