4 ms·
Lots of companies are predicting a crash in the near future. Companies are in pure profit taking mode and inventory imbalances are growing and the situation is
by jandrese 4y ago
Lots of companies are predicting a crash in the near future. Companies are in pure profit taking mode and inventory imbalances are growing and the situation is becoming less stable by the day. China shutting down entire towns for weeks at a time is contributing to the problem. It's a big problem for a highly connected economy, if you have way too much of parts A, B, C, and E, but none of part D you are in the worst position. Not only are you making no widgets, but you are also paying to warehouse all of your excess of the extra parts. An entirely predictable result of over-consolidation of numerous industries.
- molyss 4y agono only paying the warehouse, but also you'll soon be on the hook to pay for part A, B, C and E even though you have no way to sell the widget you were supposed to build with them. And if you're really lucky, those stored parts might be either perishable or quickly deprecating due to technological changes.
- margalabargala 4y ago> Lots of companies are predicting a crash in the near future. Note that when a person/company/whatever believes this, they tend to take steps that improve that entity's position, but slightly destabilizes the system as a whole. So if enough entities believe that a crash is coming, it can become a self-fulfilling prophecy.
- teeray 4y agoIs there a scenario where predicting a crash and taking action anticipating one can lead to a reduced crash or none at all?
- QuarterReptile 4y agoThe one where conservative investment and slower growth are part of the culture, maybe?
- deleted 4y ago[deleted]
- ianai 4y agoYes. It’d look like raising rates in 2016 slightly. But it’s not a certainty that would have been enough. There are lots of market concentrating powers at play leading to inefficiencies and waste.
- wolfram74 4y agoPandemics are like that, if the bulk of the community anticipates a pandemic threat, and takes steps to reduce their exposure/infection risk, it can change the environmental factors enough to make the pandemic fizzle out. It's one of those situations where if everybody's acting like its a big deal, it becomes a less big deal. Fire safety is another example.
- outside1234 4y agoWag the dog - don't like these raises everyone is asking for so let's start a rumor about a recession...