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Because much of the perceived value in capitalism is based on assumptions, and assumptions can change in value much faster than physical assets? For instance,
by pchristensen 17y ago
Because much of the perceived value in capitalism is based on assumptions, and assumptions can change in value much faster than physical assets?
For instance, Detroit has not been a valuable place to have a business or home for decades but it has faded slowly, but the assumption that housing prices would go up forever was worth trillions, but as soon as it was disproved, those trillions disappeared fast.
- chimariko 17y agoFinancial market affects today's economy a lot. There's a great demand for assumptions and forecast involved in financial services. However the reliability of today's forecast and analysis methods leaves a lot to be desired. This situation is the cause of the current crisis.