“Eventually, the whole world is going to collapse,”
Why is that true?
For the most part it is true because of the efforts by governments to suppress recessions – to focus on stability. The heavy focus on stability allows all kinds of problems to grow until they get a strangle hold on a country. Then [...]
As a distant but interested observer of history and investment markets I am fascinated how major events that arose from longer-term trends are often explained by short-term causes.
The First World War is explained as a consequence of the assassination of Archduke Franz Ferdinand, heir to the Austrian-Hungarian throne; the Depression in the 1930s as [...]
If some government loan programs have been successful, most have caused more problems than they have solved. Recent history shows the problem is worsening.
Consider the financial crisis. Popular belief is that Wall Street’s greed was at the root of the 2008 financial crisis, but government intervention in the housing market coupled with a government-backed [...]
Not much has changed in the EU since the financial crisis, the festering economic disaster that has been kept from the headlines as the US Fed and the ECB printed money as fast as they can, is set to make a return to the spotlight.
As many economists including myself have said, printing money just [...]
Overdose: The Next Financial Crisis
[Posted on July 2, 2012]
The mounting diplomatic crisis in the last week of July 1914 triggered a major financial crisis in London, the world’s foremost international centre, and around the world. In fact, it was the City’s gravest-ever financial crisis featuring a comprehensive breakdown of its financial markets. But it is virtually unknown. The reason is straightforward: it is [...]
China and India are at risk of a sudden slowdown as there is no precedent for their high growth rates being sustained. This conclusion, reported in today’s Australian newspaper, is the result of an influential Harvard study by President Barack Obama’s former chief economic adviser Larry Summers and his colleague Lant Pritchett.
The study found [...]
The 2008-2009 financial crisis, which quickly evolved into a global economic crisis, saw many of the world’s major economic powers pledge in the aftermath to embark on a series of global reforms. Still five years later, many of these proposed reforms have not been implemented and the world is not much safer now than it [...]
A series of catastrophic events in recent years have sensitized corporations, governments and other institutions to the low-probability, high-impact threats known in the risk management profession as tail risks. These events have been occurring with increasing frequency in the form of both natural and human-caused disasters. The financial kind is the focus of veteran risk [...]
Editor’s note: Below is the text of a speech delivered on Friday by Federal Reserve Chairman Ben Bernanke on the recent financial crisis and its similarities to financial panics like the Panic of 1907 (which led to the founding of the Federal Reserve in 1913).
The Crisis as a Classic Financial Panic
Chairman Ben [...]