Contagion Quotes
Credit default swaps were in large part responsible for the melt down of the economy of 2008 and the Great Recession thereafter. A credit default swap was one of the favorite derivatives that became popular. Is an insurance policy that a company will pay off its bonds and not go bankrupt. It is a cross between an insurance mechanism and a stock exchange type security mechanism, and through heavy lobbying, escaped any kind of regulation. It cost a company no money to write a credit default swap, and they were paid to do so. As long as business and the economy was good, it was a terrific business but there was no way of ever knowing how much risk they were taking. So companies who wrote credit default swaps did not have to have the money to pay to back them up. When that happened in 2008, even the largest insurance company in the world collapsed because of the risk of having to pay the credit default swap and the U. S. Government had to take over the insurance company. In 2010, the Obama administration passed a financial reform bill that began to regulate credit default swaps. Buffet, the American who had made the most money in financial securities, realized the great danger not only to the company, but to the entire national economy. Most of the rest of the financial institutions, could make large amounts of money without have to have much capital as long as things went well. So credit default swaps began to exceed the other financial instruments in activity. Neither the Federal Reserve or the other government regulatory agencies chose to regulate these risky instruments nor even to require that they be publicly disclosed -- See {637987}, {637986} and {637992}.
This is a remarkably accurate prediction of a process that has rapidly accelerated to a point that would surprise most people of the 18th century except de Condorcet.
This is an amazing quotation and shows that the Ancient Romans who had a very sophisticated medical technology had a notion of germs and microbes. Ancient Rome was the first organized nation for which health, medicine, public health, and medical research were governmental functions unlike Greece and other civilizations where health was a personal function. Roman policy emphasized prevention unlike the Greeks. Sanitation and water supply and quality were government responsibilities and the Roman standard was not reached in the rest of the world until the 18th century. Heath and medicine was also a major military responsibility. The Roman Empire depended on its army, and trained professional soldiers. Disease was a greater risk to the soldiers than were battlefield casualties, and the Romans had a strong vested interest in keeping these highly trained men alive and healthy—not just the wealthy Roman citizens. The Romans were open to techniques that were developed throughout the Empire and beyond and tended to adopt all good ideas and a few bad ones as well While they had advanced surgery, the public health was the strongest aspect of Roman medicine and health and this notion of germs and disease. Remember that the writer was not a medical or scientific man, but was just indicating what was general wisdom of the Roman elite.
The Flies was a play and this quotation is dialogue uttered by King Aegistheus in Act 2. The existence of a free man or woman has always been an anathema to a King or a Dictator.
