Sunday, February 15, 2009

If You Want To Understand The Financial Crisis...

...read this.

I forgot to post this when it came out last week even though I forwarded and recommended it to the other members of the Claremont McKenna College Student Investment Fund. Maria Lohner, a junior at CMC who will undoubtedly become a great economist or investor (or anything else she puts her mind to), mentioned it at our macro trends group meeting last week and in my opinion, it is the best summation of what led investors and financial institutions into the current credit crisis.

Lloyd Blankfein, the CEO of Goldman Sachs lays out the major factors that contributed to the downfall of our financial system and offers a cautioned prescription for the changes that must be made to prevent future crises without sacrificing economic growth in the long-run. If you have trouble accessing the story, it was published in the opinion section of the Financial Times on February 8th.

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