ABSTRACT
ToONEWHOremembersthedecadeofthe1930s,the openingofthepresentdecadeofthe1990sisoddlyreminiscent.Today,asthen,wefacetheendofanerawithout beingsureexactlywhatwillcomeinitsplace.Thingsthat onlyyesterdaywethoughtwerepermanentfixturesofthe worldcrumbleatatouch.Today,asthen,thedominant feelingisloss:lossofdirection,lossofstability,lossof freedom.Today,asthen,uncertaintiesaboutthefuture areexacerbatedbyburdensofdebtinheritedfromthe past.Inbothperiods,longstretchesofalmostcontinuous prosperitybredfinancialeuphoria.Householdsandbusinessesborrowedheavilyagainstimaginedfutureincomes, whilebanksandotherfinancialintermediariesbrought intotheirportfoliosshakyloanssecuredbyovervalued assets-corporatestocksinthe1920s,realestateandenergyresourcesinthe1980s,andclaimsonoverloaded foreigndebtorsinbothperiods.Whenrealizedincomes inevitablyfellshortofeuphoricexpectations,notonly werethedebtorssqueezedbutthefinancialsystem,which hadmadetheloans,wasrockedtoitscore.
