The Financial System is Unstable !!!
In 2005 the then newly appointed at Tilburg University professor Hans Blommestein [(OECD) asked me “are very large and complex interconnected financial systems stable or not ?”. The banking world had always ASSUMED that more interconnections between their (several types of) banks and with insurance companies would make the total ‘network’ of organizations more stable, since the them current thought was that small disturbances would even out and risks could be shared when misfortune did happen in one of their investments. But from the signals from the field Blommestein was not so sure anymore if that assumption was right, so he asked me as experienced computer network architect if this was true or not. He expressed worries about the SYSTEM INSTABILITY of the banking system .
1. Sure the financial system does fluctuate and can do so suddenly and violently. As do stock markets. “Volatility” can be staggering as…
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