Niall Ferguson Quotes
What's so seductive about the efficient markets hypothesis is that it applies nine years out of ten. A lot of the time it works. But when it stops working, you blow up.
Ferguson, Niall. The Ascent of Money: A Financial History of the World. Penguin Press, 2008.
The Meltdown of 2008 came a year later and Citigroup, one of the largest banks in America, had massive liquidity problems and in order to stave off bankruptcy the taxpayers had to come up with $45 Billion. The bank executives, as this quotation demonstrates, knew that they were in a very risky situation and that if the subprime mortgages started to default, the “music would stop” and they and the other banks would have a massive liquidity problem. None the less, they kept on investing more and more of their bank customer’s money and making money in what they knew was a highly risky enterprise. The greed clouded their judgment and when the music stopped and many were no longer dancing, the Meltdown of 2008 almost destroyed the entire national economy and triggered the Great Recession where the overwhelming proportion of Americans had to suffer for the greed of those who could not “stop dancing” even as they knew it was very dangerous.
Niall Campbell Ferguson is a Scottish historian and the Milbank Family Senior Fellow at the Hoover Institution at Stanford University. Previously, he was a professor at Harvard University, the London School of Economics and New York University, visiting professor at New College of the Humanities and senior research fellow at Jesus College, Oxford.
