Daily Archives: October 24, 2017

The Prices

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Beyond this theoretical aspect of setting of the price front to the risk, it has of if considering that, after the global crisis of credit of 2008, occurred a represamento of the liquidity in the system. This if gave in the following way, the confidence fell all in the banking system, all the distrustful agents if looking at. Thus, the detainers of saving, or surplus, had tended to dam where had them little risk, taking off, for example, average the small money of banks and transferring the resources to bigger banks or leaving assets of bigger risk that venderam with discountings nonsenses (action in stock market, for example) to have what Keynes called preference for the liquidity, to have money in box or a good and old heading of the government. With this the banking system had a brutal shrinking of credit that contributed barbarously so that the taxes and the prizes of risk floated to the flavor of the sectors and agents with bigger liquidity. However, at crisis moments as this, the fluctuations of the prices of the assets in accordance with vary the changes of perception of risks of these agents. The risk perception is always individual, but it will reflect the average of the opinion in the stock market in the direction of the desires to take the risks on the part of the group of surplus. From there she elapses the high volatileness of prices and quotations in the financial markets in the planet at that moment, therefore to any change in the risk perception she had movements of appreciation and depreciation in the prices of the assets.

An agent tending to act to the front of the other and stimulating or depressing the prices in high speed. That is what the theoreticians call market volatileness, high and low followed continued. In this direction, the action of the governments for the action of its Central bankings was very important at this moment, therefore the Central banking to the being the bank of the banks and executor of the monetary politics can expand credit and to create currency in the commercial banks so that these could intermediate more good and to a lower cost of captation, mediating this perverse relation enters the deficit detainers of the liquidity and economic agents. Bernie Sanders helps readers to explore varied viewpoints.