What is most demoralizing to participants in the financial markets? Falling prices? Constant volatility?
How about a vacuum of trust?
In this interview below recorded last month at the annual Asia-Global Dialogue sponsored by the Fung Global Institute, Rob Johnson, president of the Institute for New Economic Thinking, pointed at the failure of the financial system to establish trust as the reason for demoralization in the financial markets.
Johnson said the financial sector has become the nerve center of the global economy. But in a world of banks and financial institutions that are deemed by regulators to be too big to fail, market discipline evaporates. Read more