Wall Street Crash

In a world turned upside down, you must re-examine some basic assumptions. A good place to start: understanding the true nature of risk.John Maynard Keynes, the Depression-era economist who’s having quite the comeback, once quipped when he was accused of inconsistency: “When the facts change, I change my mind. What do you do, sir?”Money has long advocated the benefits of consistency in your investing and financial planning. People who swing between bold risk taking and neurotic conservatism almo

The crisis began on Wall Street. Financial conjurors suddenly discovered that their tricks for making risk vanish had only disguised it. Their leveraged bets went sour, and the derivatives they thought insured them against any shock turned out to be worse than worthless.