The Wall Street Journal of May 12th had two articles that made me sad. Sad because I am getting old and my importance as a thinker and as a writer about commerce is so little appreciated.
The first article is about the cause of the 2008 financial crash. The article is about Gary Gorton, currently a finance professor at the Yale School of Management who was a finance professor at Wharton at the time of the crash. Gorton said at the time and still says the crash was caused by a borrowing crisis caused by a lack of repo funding.
Repos are the very short term funds used overnight and over weekends by banks and other financial institutions. It is a repurchase agreement for some secure asset like a government bond. I said at the time and I said often that this unfortunate ‘bank run’ was caused by the small size of the repo market. There were only about $2.5 trillion in repos in the market in mid-2008 at a time when a stock market decline and bank loan demand required something like $10 trillion. The consequence was a freeze on all credit and a financial meltdown.
Gorton said so at the time. Later the chairman of the Fed., Ben Bernanke, and a dozen economists agreed with him.
The other article is in the Review section of the WSJ of the same date. It is about a man made planet for 8,000 people to circle the sun in an orbit just outside the earth’s orbit. NASA is paying consultants to work on this issue.
I started this stuff in a serious way in 1973. This blog describes my vision. This one explains why my expectations were so completely wrong. This one describes my role in getting NASA initially involved,
I started this blog saying I’m a little sad at my anonymity as a writer and thinker. That is just a fact I have to live with and have lived with for many decades as I produce more and more.
I called my latest book The Most Important Book in Human History. The arrogance of that title gives you a sense of my growing frustration with the failure of the world to appreciate my work.
The sadness is occasional. Most of my life is rewarding, filled with joy and happiness everyday.