This link has been bookmarked by 1 people . It was first bookmarked on 17 Nov 2007, by Arne Løining.
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17 Nov 07
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owever, it's worth starting by noticing that many of those things have ALREADY happened -- the existence of an uncontrolled creditor / debtor nation relationship, the securitization of credit through CDOs and other credit derivatives, and the huge asset bubbles around the world.
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The first is that what was happening the 1920s is exactly what's happening today.
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"This is a delusion about credit. And whereas from the nature of credit it is to be expected that a certain line will divide the view between creditor and debtor, the irrational fact in this case is that for more than ten years debtors and creditors together have pursued the same deceptions. In many ways, as will appear, the folly of the lender has exceeded the extravagance of the borrower."
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"Mass delusions are not rare. They salt the human story. The hallucinatory types are well known; so also is the sudden variation called mania, generally localized, like the tulip mania in Holland many years ago or the common- stock mania of a recent time in Wall Street. But a delusion affecting the mentality of the entire world at one time was hitherto unknown. All our experience with it is original.
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How a book written in 1931-32 tells us what's going to happen in 2008-2009.
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