Slapped by the Invisible Hand: The Panic of 2007

Gary B. Gorton of Yale University’s School of Management explains in some detail how in August 2007, the financial markets found themselves in the grip of a phenomenon thought to have been rendered impossible by various safeguards: a banking panic of the sort that rocked global capitalism a dozen times between 1837 and 1907. This time, however, the spectacle did not consist of individual depositors … [ Read more ]