Question

Why is the London Bridge a good analogy for what can happen in financial markets?

Answer 1

The London Bridge may be a smart analogy for what will happen within the markets as a result of though the financialmarkets is calm at the most times, meaning, trade is smooth, and investors can buy and sell in any quantities they need, if a crisis were to hit, several massive banks would be agitated. Before the crisis, everybody had their own opinions regarding sure events within the monetary market, however,after an enormous shake, everybody desires out. As long as liquidity remains on top of acertain level, markets change individuals to unfold risks and invest in long assets, like realestate. however if liquidity falls below an explicit threshold, all the weather that shaped a virtuous circle to push stability currently can conspire to undermine it,. once there have been too many of us on the bridge, the bridge began to wobble and cause damage. this is often an equivalent for the financial markets furthermore.