Deficit Owls | Financial Fragility: Markets Are Now Ruled By Speculation @deficitowls5296 | Uploaded August 2016 | Updated October 2024, 9 hours ago.
Professor L. Randall Wray discussing the outcome of the processes of innovation and destabilizing stability in Hyman Minsky's Financial Instability Hypothesis (FIH). Today, the amount of lending from banks and other financial institutions to each is the greatest its ever been, rendering the system fundamentally fragile, because one bank failing will bring the rest down with it.
Also discussed is the amount of speculation in the stock market. The average length of time stocks are held reached a minimum during the 1929 stock market crash, when speculation ruled rampant. Learning from the pain of that experience, the time stocks are held rose dramatically from 1 year to 10 years during the following decades, but in the 80s it dropped back down, and is today even lower than in 1929, indicating rampant speculation rather than buying stock for productive investment.
See the whole video here: youtube.com/watch?v=yVW3ff5XFt0
Like Deficit Owls on Facebook here:
facebook.com/DeficitOwls
Professor L. Randall Wray discussing the outcome of the processes of innovation and destabilizing stability in Hyman Minsky's Financial Instability Hypothesis (FIH). Today, the amount of lending from banks and other financial institutions to each is the greatest its ever been, rendering the system fundamentally fragile, because one bank failing will bring the rest down with it.
Also discussed is the amount of speculation in the stock market. The average length of time stocks are held reached a minimum during the 1929 stock market crash, when speculation ruled rampant. Learning from the pain of that experience, the time stocks are held rose dramatically from 1 year to 10 years during the following decades, but in the 80s it dropped back down, and is today even lower than in 1929, indicating rampant speculation rather than buying stock for productive investment.
See the whole video here: youtube.com/watch?v=yVW3ff5XFt0
Like Deficit Owls on Facebook here:
facebook.com/DeficitOwls
