It’s 10 years since the U.S. subprime crisis began, and everything’s wonderful on Wall Street. A decade after the world began to notice the losses on derivatives linked to the toxic waste of structured subprime mortgages, American stocks have produced such big returns that the biggest crash in generations barely registers. The 10-year average compound return on U.S. shares was 4.9% a year above inflation at the start of 2016, only slightly below the average for world stocks since the end of the Gilded Age in 1900,...

Source: Wall Street Journal February 22, 2017 13:52 UTC