Systemic risk

摘要

The credit crunch will roll back 30 years of free market excess in financial markets, and oil markets are caught up in the change. Electronic information and telecoms link these interconnected markets, as news and sentiment spread quickly from one market to another. The speed of trading aids the synchronicity. Yet, unlike credit markets, oil trading is always rooted in a real physical commodity. And oil companies are underpinned by tangible assets, while financial firms depend on trust and confidence in their capital base.