Many economists blamed the financial crisis on “irrational exuberance” in the banking and investment communities. Now, a former British drug czar says he knows what caused that exuberance: cocaine.
Bankers’ use of the white stimulant led them to be overconfident and make the mistakes that led to the financial crisis, David Nutt has said. Continue reading
The Guardian – 15 April 2013
“Wall Street got drunk” was George W Bush’s typically incisive take on the main cause of the emerging financial crisis in July 2008. Two years later the governor of the Bank of England, Mervyn King, explained in his Mansion House speech that “the role of a central bank in monetary policy is to take the punch bowl away just as the party gets going” Continue reading