FYI: Ten years ago this month, the failure of Lehman Brothers exposed how cavalier the world had been towards risk. Households had bought homes they thought could never go down in price, banks had made loans they thought would never default and repackaged them into securities to make them seem riskless and governments, convinced depressions were a thing of the past, had stood by.
Since then, they have sought to ensure it never happens again. And thus, the world has retreated from risk. That retreat has reshaped institutions, regulations and attitudes, and in the process the economy: It’s why economic growth has been so durable yet so muted, with less of the risk-taking that both drives booms and busts and raises long-run growth.
Regards,
Ted
https://www.wsj.com/articles/the-financial-crisis-made-us-afraid-of-riskfor-a-while-1536379306?mod=hp_lead_pos5Josh Brown's Thoughts Greg Ip Article:
http://thereformedbroker.com/2018/09/09/instability-is-stabilizing/
