I believe that all times are complex and uncertain.
Robert Rubin, 12 April 2002
The popular view is that the recent financial crisis emerged from reckless investment. In reality, the crisis was created, to a large degree, by the most risk-averse investors; those charged with protecting the foreign exchange reserves. How can the most conservative investors in the world contribute to a financial crisis? As every good school child knows, you can do anything if you try really hard; and reserve managers tried really hard.
After the Asian crisis of 1997 the world sought dollars, motivated solely by the reserve status of the currency. Despite the grand plans of Robert Rubin and Larry ...