Risk Economist Discusses Tough Times For Economy

June 28th, 2013

It is possible to predict changes in the stock market, said risk economist Didier Sornette.

In a TED Talk, Sornette discussed unstable market bubbles and how his team of researchers have been able to identify when these bubbles will pop. Sornette said that changes in the US stock market can be linked to political events, citing April’s quantitative easing in Japan as an example.

Monetary policy is the best way to prevent these bubbles, according to Sornette. Quantitative easing is not seen as a viable long-term global economic solution as it fails to tackle national debt and the root causes of the problem.

Sornette said that creativity and entrepreneurialism in today’s youth are reasons to be optimistic about the global economy. Difficult economic times can result in the most creative periods. A new way of working will become the norm and that the world will need to adapt to the inevitable changes.

Source: http://blog.ted.com/2013/06/17/turbulent-times-ahead-qa-with-economist-didier-sornette/