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S5 Ep43: The illusion of control

VoxTalks Economics

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Is the Problem of Systemic Risk Under Control?

A lot of people believe that the problem of systemic risk has gotten a lot better. I think the probem of systemic risk have actually gotten worse since two thousand and eight, he says. The man driver behind this hurt behavior if the human beings that make up the financial system. We should never understand that beneath it all are human beings making decisions. If those human beings all buy the same assets, or all make the same investments, then prices will continue to rise - fueld by nothing except those people continuig to buy. And if they all deide to sell, then Prices will crius.

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