· An event shocks the markets when it contradicts conventional wisdom of how the financial world is supposed to work. The uncertainty leads to a dramatic disengagement by the financial community the almost always requires sales and, hence, lower prices of goods and assets. We can model the euphoria and the fear stage of business cycle. Their parameters are quite different. We have never successfully modeled the transition from euphoria to fear.
Kategorija
Markets
History will judge whether Greenspan was the man who made millions of Americans rich- or the man who could not bear to tell them that they had only imagine it.
Kategorija
Markets


