"sub-prime mortgage thing, ... is something that hasn't come up before. ... It's always something new and different that causes the economy to tank, so there's only so much that knowing history will help you. "

Ah, but the wise said at the beginning of this sub prime game that the bottom would fall out when there was a downturn... they got 'Chicken Littled' for their trouble...

I got this "10% theory" - if more than 10% of any part of the economy
is 'not local' then external events affect you badly. Of course the whole premise of 'modern economics' is to 'spread the risk' by externalising...

For instance if more than 10% of a country's economy is based on tourism, then anything that affects tourism will cause conniptions...


Of course our 'Guest of many names/Delusions' does have a valid point - it's "what you DON'T know that may hurt you"... :-)