Jackie Moon’s Lehman Moment

We love allegories.  The Wizard of Oz was, many believed, an allegory  of the political and economic times of the 1890s.  Wikipedia observes the “Yellow Brick Road” represented the gold standard, and “the silver slippers the Silverite sixteen to one silver ratio (dancing down the road).   Many of the characters in the movie supposedly resembled actual political personalities of the 1890s.   Dorothy was the American people and the cowardly lion represented the politician William Jennings Bryan,  or politicians in general.  Following the road of gold lead eventually to the Emerald City, which symbolized the world of fiat paper money that only pretended to have value.

We find the following hilarious scene from the movie, Semi-Pro, an accidental allegory  of the 2008/09 financial crisis.   Can you identify the various stages of the crisis in the scene?  1)  an initial fear of leverage;  2) greed;  3) total disregard of risk;  4) arrogance ;  5) crowd psychology and reinforcement;  5) shock after reality sets in;  6)  fear;  7) denial before the storm – “subprime woes likely contained”;  and 6) full blown panic?

Jackie’s “Lehman Moment” and Roubini rhetoric is priceless!   Hopefully,  the Chinese version is not coming anytime soon.   (click here if video is not observable)

This entry was posted in China, Economics, Uncategorized and tagged , , . Bookmark the permalink.

5 Responses to Jackie Moon’s Lehman Moment

  1. Larry W says:

    It does have a frightening ring of truth to it!

  2. Pingback: Jackie Moon’s Lehman Moment | Wordwide News Exposed

  3. abstractmarkets says:

    A classic post. Thank you.

  4. Pingback: Jackie Moon’s Lehman Moment | The Big Picture

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.