Pearl Harbor (not again!)

Warren Buffet calls this our financial Pearl Harbor. He’s may be more right than realizes.

Prior to Pearl Harbor, we had lots of information that could have prepared us for the sneak attack. We just didn’t have one central place to collect and analyze it. That shortcoming in our security apparatus led to the creation of the CIA.

Similarly, in mid-decade we had plenty of information about real-estate speculation, excessive leverage, and a credit-default swap market that could combine to cause a financial meltdown. But there was no centralized financial intelligence agency that could recommend preventative action.

As we study what went wrong with the world’s financial architecture, hopefully one recommendation will be an omnibus authority that would be charged with collecting and analyzing data on global markets and money. While such an agency can’t prevent all crises, it might help us to be more prepared for the next one.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-04T15:19:27+00:00 October 14th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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