In addition to many economic and financial sources in the field of unreliable risk management procedures, re-evaluation of assets on capital markets, long-term too low interest rates by central banks, granting loans to entities without creditworthiness, etc., according to non-classical theories, other sources of crises economic.
One of these non-classical theories is combining deep economic crises with technological revolutions, the secondary effect of which is over-investing in technological projects and re-evaluating the assets that these projects relate to.
In view of the above, I am asking you: Can the genesis of global economic crises be combined with technological revolutions?
Please, answer, comments. I invite you to the discussion.
Yes, the genesis of global economic crises be combined with technological revolutions.
Please, answer, comments. I invite you to the discussion.
I am asking you: Can the genesis of global economic crises be combined with technological revolutions?
In addition to many economic and financial sources in the field of unreliable risk management procedures, re-evaluation of assets on capital markets, long-term too low interest rates by central banks, granting loans to entities without creditworthiness, etc., according to non-classical theories, other sources of crises economic. One of these non-classical theories is combining deep economic crises with technological revolutions, the secondary effect of which is over-investing in technological projects and re-evaluating the assets that these projects relate to.
Yes, Indirectly as financial engineering coupled with modern day technology is transforming the financial systems into a set of interdependent systems.... These two in combination are changing the ways a financial system work ... Asset back digitization and Securitization , and more recently Block-chain are few examples....In my opinion, these unrestrained products of this marriage (between financial engineering ) is making global financial system more vulnerable to crisis, thus can be said as gneiss of financial crisis
Technological revolution, i.e. IT technology, etc., do not cause economic crisis. The over- investment in many cases are speculative investment in the context of the stock market. The herding effect may explain this type of behavior in over-investing in technology stocks. However, if we compare that to bank lending pattern in the same sector and see the type of risk management measures by banks in speculative projects or projects with ideas but lacking real prospect of sucess...we might see a diffrent picture in risk management and investing behavior.
Yes, the genesis of global economic crises be combined with technological revolutions.
S&T adds new products in the society, often minimising problems. The costs to recycle the products efficiently for clean environment, is never added in most parts of the world.
Polluted environment poses problems and needs expenditure, creating financial burden on people.
Dear Friends and Colleagues of RG
In addition to many economic and financial sources in the field of unreliable risk management procedures, re-evaluation of assets on capital markets, long-term too low interest rates by central banks, granting loans to entities without creditworthiness, etc., according to non-classical theories, other sources of crises economic.
One of these non-classical theories is combining deep economic crises with technological revolutions, the secondary effect of which is over-investing in technological projects and re-evaluating the assets that these projects relate to.
Do you agree with me on the above matter?
Please reply
I invite you to the discussion
Best wishes
Taking into account the global financial crisis of 2008, the following question arises in the context of the above discussion: Can the global financial crisis of 2008 be linked to the current fourth technological revolution or the current technological revolution known as Industry 4.0 will only generate another economic crisis in the future?
The current technological revolution, known as Industry 4.0, is determined by the development of the following technologies of advanced information processing: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced data mining technologies.
Best wishes
There is no doubt. Advances in technology while it has improved the handling of financial systems more efficiently, the crooks have also taken advantage of it, packaging junk products and selling them. This was the major cause of the 2008 crisis where financial institutions were left with much bad debt caused 100% by their own doing and greed. There has been more incentives on the part of institutions to undertake big risks based on computer model projections which use real time data that are milliseconds apart without really caring for how it may impact the customer. .
In recent years, there have been interesting concepts of attempts to combine the cyclicality of the global economy, technological revolutions, civilization progress and stock exchange cycles - bess on the securities markets.
What's your opinion on this topic?
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