Friedman: Unknowable macro shocks pose the greatest financial system risk
Manny Friedman · Manny Friedman – Non-Linear Financial Systems (Capital Allocators, EP.61) · Jul 23, 2018 · at 28:22
Manny Friedman, co-founder and CEO of EJF Capital, discusses market tail risks and explains why non-linear, unpredictable geopolitical and macro shocks are what consistently blindside markets.
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“To me the biggest risk of the financial system is that gigantic macro unknown, and therefore it's an unknown, and we don't even know what it is, and so that is always what fools everybody, and it's that, that massive non-linear effect that takes place.”
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