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All economies are subject to this because markets are based on trust and faith. If enough doubt is generated then the markets will reflect that in a downturn.
by 40acres 7y ago
All economies are subject to this because markets are based on trust and faith. If enough doubt is generated then the markets will reflect that in a downturn.
- spamizbad 7y agoIsn't there a pretty big gulf between losing faith in a market and thinking there's a recession around the corner? A breakdown in trust in a market would more closely resemble an economic collapse rather than a a few quarters of contraction, wouldn't it?
- jp555 7y agoI think you're underestimating the amount of randomness at play in complex interconnected systems like markets.