Bank Failure, Bank Runs, and Financial System Collapses
So, holding debt is a bit like holding a ticking time bomb that rewards you while it is still ticking and blows you up when it stops.
Ray Dalio • Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail
The Origin of Financial Crises: Central banks, credit bubbles and the efficient market fallacy
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To protect against default, the Exchange required full cash collateral to borrow gold. But that was an opening for speculations by clever traders like Gould. If a trader bought gold and then immediately lent it, he could finance his purchase with the cash collateral and thereby acquire large positions while using very little of his own cash.
Charles R. Morris • The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supereconomy
