Manuel FreytasIAR Noticias15/06/09The Wall Street Journal, the most emblematic journalistic spokesman Financial imperial Zionism has just “discovered”: The massive stimulus packages launched by governments have gone to the financial markets by creating a “bubble” speculative you are doing top bags for three months, while the rest of the economy, mainly in the U.S. and Europe, collapses. The easiest way to understand the systemic risk is the inverse of a protective policy. Just as governments and institutions that monitor the markets established policies and rules to safeguard the interests of market participants, all supplements participants are intertwined in a network of branches which arise from exposure to share the same economic factors, and are under control of the same regulatory community mechanisms.
Systemic risk should not be confused with market risk, because the latter is specific to the item you wish to buy or sell. This type of risk can be mitigated. For example, consider a perfectly balanced portfolio of investments, nutrition and diversify. In this case we can say that the market risk has been canceled. herbal However, if a recession occurs and the general market collapses, this diversification could be of little importance. This is the systemic risk of the portfolio.
The essence of systemic risk is the correlation of losses. Systemic risk is the problem that is difficult to assess. For example, vitamins while the estimates and research in the cycles of various industries provide important information for physicians predicting recessions, the risk information system is usually very difficult to obtain because the interdependencies in the financial markets play a crucial role. If a bank bankruptcy and must sell all its assets, the drop in the prices of these assets may lead to liquidity problems for weight loss other banks, thereby creating panic in the interbank system.
A frequent concern is the potential fragility of some financial markets. If participants traded natural at levels of their capital bases, the failure of any party can deprive the other of liquidity, and produce a domino effect that sets the whole market systemic risk .
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