The world has been plagued with periodic bouts of the economic rollercoaster of booms and busts, inflations and recessions, especially during the last one hundred years. The main culprits responsible for these destabilizing and disruptive episodes have been governments and their central banks. Yet, to listen to some prominent and respected writers on these matters, government has been the stabilizer and free markets have forex markets in india ppt the disturber of economic order. If you’ve never seen an out-and-out cattle stampede in person, it’s difficult to convey the power and the dynamics that drive it.
First, you get a general sense of restlessness in the herd. Which makes them all more nervous. Then little pockets of cattle will start to lurch, move quickly, but not much, in one direction. They all get skittish, trying to figure out if this is really going to happen or not.
You can almost feel the heat rise as the stress levels rise. Each crisis is bigger than the one before. In complex dynamic systems such as capital markets, risk is an exponential function of system scale. Increasing market scale correlates with exponentially larger market collapses.
This means that the larger size of the system implies a future global liquidity crisis and market panic far larger than the Panic of 2008. Today, systemic risk is more dangerous than ever. Too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books. 18- Death of the Great Recovery Part 3: Housing Collapse 2.
It’s simple math — an equal and opposite reaction. Rising mortgage rates will certainly cause housing sales to fall. Prices will follow for those houses that have to sell because, as mortgage interest rises, people won’t qualify for as large a mortgage as they do now. It’s all part of the developing Epocalypse in which multiple industries collapse into the final depths of the Great Recession as the fake recovery fades out of existence like a mirage. With average incomes in the U. Podemos in a non-confidence vote against PM Rajoy.