"By now it was also evident that the investment trusts, once considered a buttress of the high plateau and a built-in defence against collapse, were really a profound source of weakness. The leverage, of which people only a fortnight earlier had spoken so knowledgeably and even affectionately, was now fully in reverse. With remarkable celerity it removed all of the value from the common stock of a trust."
Sound familiar? The American economic historian, JK Galbraith, wrote these words in 1955, in
The week on Risk.net, July 7-13, 2018Receive this by email