Nick Gogerty

Decoupling: The Theory That Won't Die

De-coupling is bogus in times of economic stress. According to Kindelberger the first global economic crisis was in 1873. I doubt things have lost their linkage since then. We are all in this together. Most economic crisis last 3-4 years and aren't a straight fall, they are bumpy. Study a few hundred years of history and you get more than the usual 5-6 samples put up by the pundits about credit and asset bubbles. Kindelbergers synopsis of history is also very telling on how central banks respond to these events.