Financial crisis explained….
| December 03, 2008
By the Chinese. When our elected officials in Washington reach this level of candor, it will be a glorious day. This quote, from an interview in The Atlantic sums it up well:
“Thirty years ago, the leverage of the investment banks was like 4-to-1, 5-to-1. Today, it’s 30-to-1. This is not just a change of numbers. This is a change of fundamental thinking. People, especially Americans, started believing that they can live on other people’s money. And more and more so. First other people’s money in your own country. And then the savings rate comes down, and you start living on other people’s money from outside.”