How Robust is your National Economy?

As most of my readers know, the New York Times Online (DealBook section) published this week my proposals for a robust early-warning mechanism for global systemic risk in finance, economics and business.

As long as such a mechanism is not put in place, there are some penetrating questions that you can ask regarding the situation of your own national economy.

These questions are raised and published in this month's issue of Fast Future Bulletin, a monthly(ish) newsletter produced jointly by Rohit Talwar of Fast Future Research and Ian Pearson of Futurizon:

"1. Will the current regulatory system and the changes planned in the near future prevent your banks from creating crises such as the one we’ve just experienced?

"2. Do your governments now have better early warning systems and coping mechanisms to detect and deal with future banking crises while they are only weak signals?

"3. Does your economy have the financial resources to manage another bail out on the scale of the one we’ve just experienced?"

I would modify the wording to address the "financial system and cultural values" rather than merely "banks" (as these are now rather weak things compared to all the other players in the field). Sphere: Related Content