A tounament for status and mating territories

Discussion in 'Economy' started by william the wie, Aug 25, 2012.

  1. william the wie
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    william the wie Gold Member

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    That was what the mostly worldwide real estate bubble 1994-2006 was and that resulted in the 2008 meltdown. The 1975-89 S&L bubble was another status tournament as were the earlier Japanese and Scandinavian real estate bubbles.

    When LTCM got caught up in the Scandinavian bubble (Danish mortgages was one of the critical losses) and went bust there was a bailout. Bear Stearns bowed out of the bail out and Lehman Brothers went light. So 10 years prior to the meltdown the Fed and SEC knew who the weak sisters were and did nothing. So, why do economists have this blindspot to status tournaments? Anyone got an idea?
     

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