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Friday, January 13, 2006

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It sounds kind of morbid to say, but we’ve clearly discovered that a large loss of credit affects the market more deeply and fundamentally than a loss of life. And not just with a pandemic. The market sure dropped on 9/11, but steady investors won out after the panic had subsided.

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Searched for the information on this theme, and only here I found it. The much criticised “global imbalances” would be mitigated but in the worst possible way as US imports and East Asian exports both tumbled.

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