Michael Lewis writes in the opening chapter of his book “Panic”,
The striking thing about the seemingly endless collapse of the subprime-mortgage market is how egalitarian it has been. It’s nearly impossible to draw a demographic line between the victims and the perps (perpetrators)
Millions of ordinary people ignorant of high finance have lost billions of dollars, but so have the biggest names on Wall Street …
Both underestimated the likelihood of an unlikely event: a financial panic.
In retrospect, the small army of Wall Street traders who lost tens of billions of dollars in subprime-mortgage investments looks as naïve and foolish as the man on the street.
But there’s another way of viewing this crisis.
The man on the street, for the first time, acted on the same foolish principals that have guided the behavior of sophisticated Wall Street traders for the past few decades.
“Panic” – it is not about how much money you have – panic may strike with least regard to your financial status, your social status, your position in business …
#RidingTheRollerCoaster – 211