Logical Analysis Report

Key Focus

Such guarantees could potentially undermine the government bond markets.
Second, markets are so intertwined that any freeze would have to apply to all major markets around the world, in all major asset classes, and in derivatives and private markets as well, which would be impossible to enforce
of the financial system via central bank action and to backstop credit via state guarantees and (iii) confidence that asset prices properly discount the impairment to earnings (equities), to financial disintermediation (credit spreads) and to growth (yield curves).
Panic of the kind we are witnessing now comes from uncertainty and fear that the bouncing ball.s motion may slow, or even stop. And since modern, technology-enabled financial markets are so intertwined, actions at any distance immediately affect the actions of others, and panic can spread at lightspeed

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Knowledge Graph(Read more)

Complex Event Analysis(Read more)

High Level Topics

MARKETS

GOVERNMENTS

GAME

FEAR

High Level Abstractions

MARKETS(6, 0 Order)

( MARKETS )(6, 0 Order) top

( MARKETS, INTERTWINED )(2, 1st Order) top

( MARKETS, ASSET )(2, 1st Order) top

( MARKETS, WORLD_WAR )(1, 1st Order) top

( MARKETS, VELOCITY )(1, 1st Order) top

( MARKETS, TECHNOLOGY-ENABLED )(1, 1st Order) top

( MARKETS, SERVICE )(1, 1st Order) top

( MARKETS, PRESENT-VALUED )(1, 1st Order) top

( MARKETS, POLICY )(1, 1st Order) top

( MARKETS, NEW_YORK_STOCK_EXCHANGE )(1, 1st Order) top

( MARKETS, MONIES )(1, 1st Order) top

( MARKETS, MEDICAL )(1, 1st Order) top

( MARKETS, GROWTH )(1, 1st Order) top

GOVERNMENTS(2, 0 Order)

( GOVERNMENTS )(2, 0 Order) top

GAME(1, 0 Order)

( GAME )(1, 0 Order) top

FEAR(2, 0 Order)

( FEAR )(2, 0 Order) top

References

( MARKETS ) top
( MARKETS, INTERTWINED ) top
(Read more) top. And since modern, technology-enabled financial markets are so intertwined, actions at any distance immediately affect the actions of others, and panic can spread at lightspeed
(Read more) top
Second, markets are so intertwined that any freeze would have to apply to all major markets around the world, in all major asset classes, and in derivatives and private markets as well, which would be impossible to enforce
( MARKETS, ASSET ) top
(Read more) top of the financial system via central bank action and to backstop credit via state guarantees and (iii) confidence that asset prices properly discount the impairment to earnings (equities), to financial disintermediation (credit spreads) and to growth (yield curves).
Panic of the kind we are witnessing now comes from...
(Read more) top
Second, markets are so intertwined that any freeze would have to apply to all major markets around the world, in all major asset classes, and in derivatives and private markets as well, which would be impossible to enforce
( MARKETS, WORLD_WAR ) top
(Read more) topAnd the markets have closed before in times of great uncertainty and panic, such as after 9/11, or during World War I when the New York Stock Exchange was closed for four months.
Yet there are at least three reasons why .suspending market motion
( MARKETS, VELOCITY ) top
(Read more) top... each bounce, a good or service is exchanged and resulting monies (energy) move in a slightly different direction. All financial markets are basically built on predicting direction of motion and rates of velocity, present-valued to discount future interactions as well.
Today, financial market participants are mostly blind to the true trajectory of Covid-19 and will remain so until there is (i) an effective...
( MARKETS, TECHNOLOGY-ENABLED ) top
(Read more) top. And since modern, technology-enabled financial markets are so intertwined, actions at any distance immediately affect the actions of others, and panic can spread at lightspeed
( MARKETS, SERVICE ) top
(Read more) topAt each bounce, a good or service is exchanged and resulting monies (energy) move in a slightly different direction. All financial markets are basically built on predicting direction of motion and rates of velocity, present-valued to...
( MARKETS, PRESENT-VALUED ) top
(Read more) topAll financial markets are basically built on predicting direction of motion and rates of velocity, present-valued to discount future interactions as well.
Today, financial market participants are mostly blind to the true trajectory of Covid-19 and will remain so until there is (i) an effective containment...
( MARKETS, POLICY ) top
(Read more) top... Covid-19 and will remain so until there is (i) an effective containment of the pandemic in the major economies, (ii) belief that governments are undertaking sufficient steps to spur demand via fiscal policy, to underpin the .plumbing.
( MARKETS, NEW_YORK_STOCK_EXCHANGE ) top
(Read more) topAnd the markets have closed before in times of great uncertainty and panic, such as after 9/11, or during World War I when the New York Stock Exchange was closed for four months.
Yet there are at least three reasons why .suspending market motion
( MARKETS, MONIES ) top
(Read more) topAt each bounce, a good or service is exchanged and resulting monies (energy) move in a slightly different direction. All financial markets are basically built on predicting direction of motion and rates of velocity, present-valued to discount future interactions as well.
Today,...
( MARKETS, MEDICAL ) top
(Read more) topCertain goods and services would have to continue trading to assure critical food and medical supplies, which would result in uneven rules being applied. Black markets would increase, leading to additional fraud and crime.
And third, and most problematic, the unintended consequences would...
( MARKETS, GROWTH ) top
(Read more) top ... action and to backstop credit via state guarantees and (iii) confidence that asset prices properly discount the impairment to earnings (equities), to financial disintermediation (credit spreads) and to growth (yield curves).
Panic of the kind we are witnessing now comes from uncertainty and fear that the bouncing ball.s motion may slow, or even stop
( GOVERNMENTS ) top
(Read more) top... financial market participants are mostly blind to the true trajectory of Covid-19 and will remain so until there is (i) an effective containment of the pandemic in the major economies, (ii) belief that governments are undertaking sufficient steps to spur demand via fiscal policy, to underpin the .plumbing
(Read more) top Their wild fluctuations are symptoms of the crisis, not the cause. Beyond the emergency fiscal and monetary steps being promulgated by governments around the world, there is only one antidote to avoiding panic. It is the set of basic steps every human being knows, intuitively, when faced with stress: Stop, gain control of your breathing,...
( GAME ) top
(Read more) topAnd the biggest secondary threat we face from the virus is panic. Financial panic is a kind of quantum entanglement. Our global economy is nothing more than a giant multiplayer game of Pong, with each person.s motion bouncing off of another.s, forever. At each bounce, a good or service is exchanged and resulting monies (energy) move in a slightly different direction
( FEAR ) top
(Read more) top... discount the impairment to earnings (equities), to financial disintermediation (credit spreads) and to growth (yield curves). Panic of the kind we are witnessing now comes from uncertainty and fear that the bouncing ball.s motion may slow, or even stop. And since modern, technology-enabled financial markets are so intertwined, actions at any distance immediately affect the actions of others, and...
(Read more) topIt is the saying your mother preached: This too shall pass. We are all entangled with each other. Each of us can give in to fear and spread panic. Or we can take control of the one thing we can control.ourselves. This is how we avoid financial panic and its devastating aftermath. Alex Friedman is the co-founder of Jackson Hole Economics, LLC,...