Many have pointed out how much more connected the physical world is today than during the 2002-03 Sars epidemic. How much more connected is the financial world today than during the 2008 great financial crisis?
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OTC derivatives, with no counterparty clearing, are even more opaque now than in 2008. In that sense, the financial world is more interconnected, um more brittle than in 2008, yes?
I don't know anything about OTC derivatives, so thanks for that comment. Now I know! As for interconnectedness, the more interconnected the economy is, the greater the effects of a single part's failure will be. Thus, I guess we could say it is more brittle.
