George H. Blackford, Ph.D.

 Economist at Large

 Email: george(at)


It ain't what you don't know that gets you into trouble.

It’s what you know for sure that just ain't so.
Attributed to Mark Twain (among others)



Economic Papers
Political Essays

Where Did All The Money Go?

Chapter 9: LTCM and the Panic of 1998

Chapter 9: LTCM and the Panic of 1998 chronicles the events that occurred during the Panic of 1998 when a single hedge fund, Long-term Capital Management, posed a threat to the financial stability of the entire world. It is shown that all of the dangers implicit in the way in which our financial system had been deregulated were obvious to those who investigated this incident at the time but that ideological blindness inspired by an almost religious faith in free markets on the part of policy makers and elected officials made it impossible to heed the General Accounting Office’s warnings and regulate shadow banks and the over-the-counter markets for derivatives.

See: Where Did All the Money Go? How Lower Taxes, Less Government, and Deregulation Redistribute Income and Create Economic Instability (2014) at Click here for a preview.

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