Is a ’90s-Type Crash Ahead?

    NEW YORK, NY - NOVEMBER 20:  Federal Reserve Chairman Ben Bernanke addresses the Economic Club of New York on November 20, 2012 in New York City. In his speech he urged Congress to act to avoid the so-called "fiscal cliff" of severe budget cuts and tax hikes in 2013, which he said would throw the U.S. economy back into recession.  (Photo by John Moore/Getty Images)

    John Moore / Getty Images

    All eyes are on the Fed’s looming decision on the economy, but what if it bears a resemblance to the bear market of 1994? In 1994, the Fed unexpectedly raised rates, causing chaos in the market and some major names to fall, including Stephen Friedman at the helm at Goldman Sachs. Today’s traders are much more tuned in to the Fed’s thinking before a decision—markets often go up or down based on predictions, as opposed to 1994—and current Fed chairman Ben Bernanke is much more open about his policies, but that hasn’t stopped Wall Street from being haunted by the ghosts of 1994.

    Read it at Financial Times