<story><title>Global recession fears grow as factory activity shrinks</title><url>https://www.reuters.com/article/us-global-economy/factory-activity-shrinks-across-asia-global-recession-fears-mount-idUSKCN1T40EI</url></story><parent_chain><item><author>coolaliasbro</author><text>These considerations are requisite only in a capitalist system. In other economic models it is not a given that ”[i]nvestors...need to decide which businesses are viable... Workers need to consider career changes.&amp;quot; In fact, the division between investors on the one hand and workers in the other is a large part of this problem. If we socialized gains and privatized losses (in the sense of never bailing out those agents that got themselves into bad situations), these cycles would at worst be much less severe and frequent.</text></item><item><author>lordnacho</author><text>Whether or not this is the start is not so important, but remember it&amp;#x27;s been a while since the last one, and it&amp;#x27;s a common thing to occur in the economy, or any other ecological system.&lt;p&gt;It&amp;#x27;s also something that has an important role. Investors at some point need to decide which businesses are viable, which are not. Workers need to consider career changes. Corporate entities need to consider which projects are worthwhile. All those kinds of decisions are put to the test when not everything can be given a long horizon.&lt;p&gt;Finally, there is a twist this time. We&amp;#x27;ve been running a financial experiment with few parallels over the last decade or so.</text></item></parent_chain><comment><author>shanusmagnus</author><text>If we socialized gains and privatized losses, there&amp;#x27;d be less severe cycles because there&amp;#x27;d be less economy to have cycles on.</text></comment>
<story><title>Global recession fears grow as factory activity shrinks</title><url>https://www.reuters.com/article/us-global-economy/factory-activity-shrinks-across-asia-global-recession-fears-mount-idUSKCN1T40EI</url></story><parent_chain><item><author>coolaliasbro</author><text>These considerations are requisite only in a capitalist system. In other economic models it is not a given that ”[i]nvestors...need to decide which businesses are viable... Workers need to consider career changes.&amp;quot; In fact, the division between investors on the one hand and workers in the other is a large part of this problem. If we socialized gains and privatized losses (in the sense of never bailing out those agents that got themselves into bad situations), these cycles would at worst be much less severe and frequent.</text></item><item><author>lordnacho</author><text>Whether or not this is the start is not so important, but remember it&amp;#x27;s been a while since the last one, and it&amp;#x27;s a common thing to occur in the economy, or any other ecological system.&lt;p&gt;It&amp;#x27;s also something that has an important role. Investors at some point need to decide which businesses are viable, which are not. Workers need to consider career changes. Corporate entities need to consider which projects are worthwhile. All those kinds of decisions are put to the test when not everything can be given a long horizon.&lt;p&gt;Finally, there is a twist this time. We&amp;#x27;ve been running a financial experiment with few parallels over the last decade or so.</text></item></parent_chain><comment><author>SkyBelow</author><text>&amp;gt;In other economic models it is not a given&lt;p&gt;Yes, because they tend to go straight down the tube because when you socialize gains and privatize losses people don&amp;#x27;t do more than the minimum they can get away with.</text></comment>