I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.
Sentiment: NEGATIVE
The markets don't like instability and they don't like uncertainty.
The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
As discomfiting as it is to both market optimists and policy activists, a certain amount of instability is inherent to the economy.
What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.
There are still deep-seated structural problems that threaten the economic balance in the world: Between the United States and China, for example, but also within Europe. We have taken a few steps toward taming the financial markets, but we haven't come nearly far enough to rule out a repetition of the crisis.
The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
Today the financial market is no good, but the money is there.
Markets are frequently ahead of, and often out of sync with, the economy.
Our economy is increasingly dependent on the success and integrity of the financial markets.
No opposing quotes found.