Michael Lewis’ 1989 Article: “How A Tokyo Earthquake Could Devastate Wall Street & The Global Economy”

Thursday, March 17, 2011
By Paul Martin

Gus Lubin
BusinessInsider.com
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.

The Rest…HERE

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