Thursday, September 08, 2005

We Could Get a Recession Out of This

Hussman Funds - Weekly Market Comment: September 6, 2005 - We Could Get a Recession Out of This
Financial volatility is a combination of two conditions: inelasticity and illiquidity.

Inelasticity is essentially the failure of demand or supply to respond to changes in price. We typically think of energy demand as relatively “inelastic,” meaning that even substantial increases in price don't typically reduce demand by much.
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