Why Financial Crises Happen Over And Over Again

Here are two interesting charts presented by economist Joachim Fels at Morgan Stanley’s Macro Ideas & Insights Forum in London.

They show the “CRIC” cycle and how it has rolled in Europe.

Basically, complacency begets a crisis, which begets a response, which begets improvement, which begets complacency.  And it all starts over again.

Morgan StanleyAs it relates to Europe:

Morgan Stanley

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