1/4
“It is no secret that over the years a lot of intellectual capital has been invested in the proposition that massive defaults in the Third World will cause a world financial crisis." Walter Wriston crowed at the 1981 IMF conference.
“It is no secret that over the years a lot of intellectual capital has been invested in the proposition that massive defaults in the Third World will cause a world financial crisis." Walter Wriston crowed at the 1981 IMF conference.
2/4
But nothing happened, he explained with some satisfaction: "Those who have taken this view since 1973-74 have been proved wrong, and those of us who believed the market would work proved correct.”
But nothing happened, he explained with some satisfaction: "Those who have taken this view since 1973-74 have been proved wrong, and those of us who believed the market would work proved correct.”
3/4
Less than one year later, massive defaults in the Third World were set off by a famous call to the New York Fed by Mexico's Finance Minister, in which he warned that Mexico couldn't make its September debt payments. This, in turn, set off a global financial crisis.
Less than one year later, massive defaults in the Third World were set off by a famous call to the New York Fed by Mexico's Finance Minister, in which he warned that Mexico couldn't make its September debt payments. This, in turn, set off a global financial crisis.
4/4
The lesson? Just because an unsustainable process can run on longer than you might have expected doesn't mean that it isn't unsustainable.
The lesson? Just because an unsustainable process can run on longer than you might have expected doesn't mean that it isn't unsustainable.
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