Quote of the day by Irving Fisher: "A chief cause of crises, panics, runs on banks, etc., is that risks are not independently reckoned, but are a mere matter of imitation. A crisis is a time of general and forced liquidation"
60-Word AI Digest
Economist Irving Fisher warned that investors copying one another can amplify financial risks. Rising optimism can fuel credit and asset prices, while sudden fear can trigger forced liquidation, falling prices, tighter liquidity and a self-reinforcing cycle that deepens financial crises.
Key Takeaways
- Economist Irving Fisher warned that investors copying one another can amplify financial risks.
- Rising optimism can fuel credit and asset prices, while sudden fear can trigger forced liquidation, falling prices, tighter liquidity and a self-reinforcing cycle that deepens financial crises.
- Full details and original dispatch available below.
Economist Irving Fisher warned that investors copying one another can amplify financial risks. Rising optimism can fuel credit and asset prices, while sudden fear can trigger forced liquidation, falling prices, tighter liquidity and a self-reinforcing cycle that deepens financial crises.
Original Publisher Attribution
This summary was curated from Economic Times.