The world is curved - summary after read

This book is written by d smirk on year 2008. It mentioned about the current financial world has a lot of uncertainty eventhough globalization happens in every where, it seems like unpredictable and out of the control by each central bank.

This book started up with the current financial crisis - subprime crisis in US, and took more example to explain the uncertainty of current financial situation. The securitization of the loan had created the bubble of financial market since year 1982 and because of the globalization, the whole world cannot escape or immune from the economy slow down.

The author used china, England, and japan ad well as italy, Germany to further elaborate the impact of the global money to each country. For example japan, the low interest rate provided by the japan central bank has helped the export industry to stay competent with the rest company in the world. Wheras it also created oportunity for housewives to invest in higher return asset. This make japan housewives but not central bank to control the economy of japan.

As a conclusion, I believe that crisis means disaster but also means opportunity. It creates an opportunity to central bank in each countries to tighten the regulation and hence create a more efficient yet regulated market.

Another thing is that, we should also know how to diversify our asset into different asset classes, so that we can reduce the systematic risk or market risk involved.