Michael Lewis’ 1989 Article: “How A Tokyo Earthquake Could Devastate Wall Street & The Global Economy”
Mar. 16, 2011
A prescient article by Michael Lewis in 1989 looked at the systemic risk of a Japanese earthquake (via Paul Kedrosky).
Basically it goes like this. An earthquake destroys the Tokyo Stock Exchange and all financial records. Shares of Western insurance companies lead a global selloff. Japan liquidates overseas holdings. This causes the U.S. bond to collapse. Recession ensues.