Darrol Stanley and Donald Atwater Publish Research on Tipping Points for the Next Financial Crisis
Risks of the next United States financial crisis are increasing, evident by the decreasing values of assets, a recession caused by government policies, decreases in the value of existing bonds, and significant social stress fueled by political polarization. Pepperdine Graziadio Business School faculty Darrol Stanley and Donald Atwater dove into these risk factors in their paper “Unmasking the Tipping Point for the Next U.S. Financial Crisis” for SSRN.
In the paper, Stanley and Atwater use the new risk index called the Crisis Index to evaluate how close the U.S. is to a tipping point for the next financial crisis. The paper identifies five national policies that asset managers can monitor as signals of increasing risks. A review of policy actions and economic trends in the first two quarters of 2022 verifies that the risks of a crisis are increasing and nearing a tipping point from the post-midterm election to the mid-2023 period.
To read the full article in SSRN, click here.