Manage episode 290294912 series 5173
Legendary economist Henry Kaufman shares a classic Wall Street story that has never been fully told: a firsthand account of the day in August 1982 that would define US economics for decades.
That single day turned out to be the beginning of the world that we now live in. At the time, after painful years of high interest rates and the inflation of the late 1960s and 1970s, consumers were paying 17 percent and higher to borrow money. But by the end of one summer day almost 40 years ago, the stock market had undergone its second-biggest rally since WWII, while bond prices soared and interest rates plunged. Dr. Kaufman himself had written a memo that sparked this tremendous boom-and it set the global markets on fire, marking the start of almost four decades of US economic growth.
Bio: Dr. Henry Kaufman is an economist. As senior partner, chief economist, and director of research at Salomon Brothers, then the most profitable investment bank in the world, his fame extended well beyond the financial industry and into popular culture, and enjoyed the nickname “Dr. Doom.”
In this episode of Trend Following Radio:
COVID-19 Pandemic Financial Markets Low Interest Rates Henry Kaufman Warning Federalism and State Control