How A Tokyo Earthquake Could Devastate Wall Street & The Global Economy - Michael Lewis' 1989
|
|
Michael Lewis wrote an article in 1989 by regarding the Japanese stock market & an earthquake. Michael Lewis is famous for his recent book regarding the subprime meltdown. Michael Lewis’s article is titled “The Earthquake that destroyed wall street and the world”. What is prolific is that Michael Lewis thought of this in 1989. The reality is not that far from fiction. In 1923 Tokyo was hit by a major earthquake called the Kinto earthquake. It reached 7.9 on the Richter scale and was followed by 171 after shocks. Within minutes a massive Tsunami hit Tokyo. The stock market crashed and countless banks failed.
Tokyo sits on 4 of the 12 major plates & has one of the highest potential or risk than virtually anywhere in the world for a California style earthquake. A catastrophic earthquake can happen at any time. If one of this type of catastrophic earthquakes occurs Michael Lewis continued with the idea:
1.An earthquake destroys the Tokyo Stock Exchange and all financial records. Shares of Western insurance companies lead a global selloff. Japan liquidates overseas holdings. This causes the U.S. bond to collapse. Recession ensues worldwide.
How far off could Michael Lewis be to what we see occurring in Japan right now?
Read the Article >>
|
