Why subprime is worse than 9/11
Osama bin Laden once said that his goal is “bleeding America to the point of bankruptcy.” Maybe he should have gotten into the mortgage business instead of becoming a terrorist. Zubin Jelveh blogs a new IMF working paper by Hui Tong and Shang-Jin Wei, who look at the responses by economic forecasters and consumers to ...
Osama bin Laden once said that his goal is "bleeding America to the point of bankruptcy." Maybe he should have gotten into the mortgage business instead of becoming a terrorist.
Osama bin Laden once said that his goal is “bleeding America to the point of bankruptcy.” Maybe he should have gotten into the mortgage business instead of becoming a terrorist.
Zubin Jelveh blogs a new IMF working paper by Hui Tong and Shang-Jin Wei, who look at the responses by economic forecasters and consumers to 9/11 vs. their reactions to the subprime mortgage crisis. As you can see, everybody pretty much shrugged off 9/11 (at least when it comes to the economy; emotional grief is, of course, beyond measure) after about six months, but subprime has brought a steady decline in confidence:
Blake Hounshell is a former managing editor of Foreign Policy.
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