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    • Mon Mar 17th 11:23 AM | Rating: 0 0
      Commented on:
      Next Up: Lehman Brothers?
      "an important driver of the risk rating of a business is the action of its stock"

      This is what we engineers call a positive feedback loop. Risk rises as a result of poor stock action. As a result, institutions are forced to minimize exposure to the risk, thus creating more poor stock action. Positive feedback is almost always the enemy of stability.
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