Cluster Family Office Blog

The Year We Lived Dangerously (The Year of Living Dangerously). That could be the title for the events that have unfolded since the collapse of Lehman Brothers on 15 September 2008, although in reality we have been living dangerously since the start of the century. But we only began to sense the impending collapse as early as August 2007, when the credit mechanisms of the financial system started to grind to a halt. From then on, everything came crashing down like a house of cards with the momentum of an oil tanker: slowly but inexorably.

A year ago, systemic risk hit rock bottom, at least on the surface. But deflation, negative macroeconomic figures and the destruction of wealth continue. It seems that some indicators of some countries are breaking free from the downward spiral and will enjoy better prospects. Only time will tell whether these will be short-lived or whether the recovery of some will take hold. In the rear carriages In terms of economies, these signs of recovery are like a painkiller. Mere delusions which distract one’s attention, thereby preventing the clear-sightedness needed to row in the right direction.

Investorsconundrum has linked this interactive infographic from Reuters (view the timeline) where we can see, day by day from 9 August 2007 onwards, the worst global economic crisis in history. It is very instructive today to look back and review, through headlines and images, the year that changed the world. Some of the images in this mosaic are not to be missed. Long gone are the images of Bush trying to understand what was happening to ultra-liberalism, when Islamic terrorism was the world’s main concern. May God grant us good fortune in this New Era: The Year 1 A.L.