As the economic crisis continues to unfold, recently a sense of uncertainty has begun to pervade the market. Even dyed-in-the-wool risk takers admit that they don't know what to think anymore. Inflation, deflation, recession or depression - there are so many vagaries that it appears to be anyone's guess what will happen next.
"Globalization creates interlocking fragility, while reducing volatility and giving the appearance of stability. In other words it creates devastating Black Swans. We have never lived before under the threat of a global collapse. Financial institutions have been merging into a smaller number of very large banks. Almost all banks are interrelated. So the financial ecology is swelling into gigantic, incestuous, bureaucratic banks - when one fails, they all fall. The increased concentration among banks seems to have the effect of making financial crisis less likely, but when they happen they are more global in scale and hit us very hard. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur - I shiver at the thought." --- Nassim Taleb, The Black Swan (2007)
The provincial government is systematically moving components of BC Hydro into the private sector, even as it's reassuring residents the Crown corporation won't be privatized, warns the author of a new book.
Calls for national security to the contrary, America's appetite for energy is stronger than its caution. In the last 15 years, the United States has steadily increased its dependence on imported crude oil by some 60%.
At peak hours, India's power deficit is over 14% from an average energy shortfall of 9% during non-peak hours. The use of nuclear power to generate an extra 50,000 MW of electricity is the most viable solution to the problem.