Short-term Policies Pushing Economy Closer to Crisis with Didier Sornette

Interview recorded - 11th of October, 2023
On this episode of the WTFinance podcast I had the pleasure of speaking with Didier Sornette - Emeritus Professor of Entrepreneurial Risks at ETH Zurich; and Chair Professor and co-Dean of the Institute of Risk Analysis, Prediction, and Management (Risks-X) at the Southern University of Science and Technology (SUSTech) Shenzhen.
During our conversation we spoke about whether you can predict financial crises, how this was done during 2008, what Didier is seeing in current markets and how this may link to the current bond markets. I hope you enjoy!
0:00 - Introduction
1:41 - Can you predict financial crises?
5:26 - Finding preluding indicators before crises?
9:21 - What did Didier see during 2008 to see risk in the housing markets?
16:21 - FED’s trying to reduce risk as much as possible
23:56 - Are we currently heading towards a crisis?
36:00 - Bond market housing market comparison?
42:01 - One message to takeaway from our conversation?
Didier Sornette is Emeritus Professor of Entrepreneurial Risks at ETH Zurich, and Chair Professor and co-Dean of the Institute of Risk Analysis, Prediction, and Management (Risks-X) at the Southern University of Science and Technology (SUSTech) Shenzhen. Since his recent retirement from ETH Zurich, Professor Sornette has been working actively with the private sector on developing socially important products with clear applications in the medical field and in dynamic financial risk management.
Professor Sornette is using data-driven mathematical statistical analysis to study the predictability and control of crises and extreme events in complex systems. His key contribution is to use nonlinear multi-variable dynamical settings that include both positive and negative feedback. The results obtained help us better understand the overall stability and instability of financial markets.
Didier Sornette -
Website - emeritus.er.ethz.ch/about-us/...
Publications - www.researchgate.net/profile/...
WTFinance -
Instagram - / wtfinancee
Spotify - open.spotify.com/show/67rpmjG...
iTunes - podcasts.apple.com/us/podcast...
Twitter - / anthonyfatseas
Thumbnail image from - news.bitcoin.com/anti-russia-...

[@WTFinancepodcast]

Do you agree with Didier that short-term policies are causing the global crises we are currently seeing arond the world?

[@BlueWaterSTAX]

Indeed

[@dennykeaton9701]

Yes

[@BlueWaterSTAX]

Well done guys. Awesome channel Anthony. Thanks 👍

[@nunoalexandre6408]

Love it!!!!!!!!!!!!!

[@skijay2010]

Didier is just awesome. need people with open minds and less demagogic experts.

[@jeffbguarino]

This Didier Sornette , I remember him from about the years 2000. He had a theory about the way markets crash and it was totally wrong and never happened. He used the math from the way earthquakes happen. It was completely wrong and he was forecast out to 2014. He totally missed the crash in 2008 and predicted one for about 2014. I still have his papers I printed out from over 20 years ago. I wonder what he did afterward and how he kept a job ?

[@dennykeaton9701]

Thanks for telling us this. I was actually fooled by him.

[@ashoka5148]

Prediction is just probability.

[@jeffbguarino]

@@ashoka5148 When you predict , you need to use the real world conditions. He was just using a formula and I think based on the past actions. You can't predict anything this way, you are just finding patterns in the past data. The future path never follows the past.

[@user-nu9zv9bq3n]

Professor Sornette is OUTSTANDING. Privelage to hear an assessment of our reality. 90% of us are going to be impoverished. Clive Thompson and Simon Hunt (Wealthion yt) are informative too Thanks!

[@heidihelo5773]

Fantastic interview.

[@mikeb6774]

fire

[@Tyuwhebsg]

What do you mean only drinking vodka not healthy

[@easterntechartists]

Zero risk mistake? Who had the most disastrous zero COVID policy , china or the west?

[@violetlightburst]

Agree slow turtle economic financial global multiple decades reset ...

[@jisskk28]

The Fed always pulls another "tool" out their ass😏😆

[@hiroshiokamoto2914]

Give me a break! This guy was telling students to buy Bitcoin at the top in 2021 during his ETH lectures, poor students left holding the bag🤣🤣Now he has become a Chinese mouthpiece, singing praises to the party 🎶🎶

[@tamayozgokmen9596]

Why is it that he is incapable of clearly saying that we are entering another major crisis? Just blah blah blah... theory without application.