Comments on: China and the chaos theory of finance http://blogs.reuters.com/breakingviews/2013/04/08/china-and-the-chaos-theory-of-finance/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: breezinthru http://blogs.reuters.com/breakingviews/2013/04/08/china-and-the-chaos-theory-of-finance/comment-page-1/#comment-11586 Tue, 16 Apr 2013 04:37:56 +0000 http://blogs.reuters.com/breakingviews/?p=18123#comment-11586 The Financial Chaos Index is a fascinating idea. It seems difficult to know at which position a particular economic entity stands in real time because major players have an interest in making it appear that everything is as it should be.

Position on the index might be considered a functional juxtaposition of previously hidden, ignored or unknown risks and the responses to those risks over time.

Consider the multiple risks mentioned in this recent Reuters article regarding the Eurozone:

http://www.reuters.com/article/2013/04/1 3/us-europe-ministers-esm-idUSBRE93C0972 0130413

It is impossible to know at this moment whether the risks will be adequately resolved in a timely fashion. At this moment, either all is well or the Eurozone is quite high on the Financial Chaos Index… and we will discover which is the case at some point in the future.

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