Small mistakes are the stepping stones to large failures. Please elucidate and provide an example of a seemingly small mistake with large consequences relevant to finance and economics.
I'll pick the East Asian crisis of 1997.
The whole thing begins with the actions of Soros and his various firms relative to the Thai currency, the Baht. Of course, not just Soros, but the entire speculative industry. Remember that Thailand (and many other Asian countries) kept their interest rates artificially high in order to attract investment. Some say (some) that this is what triggered the collapse of the East Asian economic miracle.
Thailand created a debt bubble, not that much different than the U.S. housing market fall in 2007. Economic growth in Thailand was about 8% a year in the early 1990s, which is excellent. It seems that capital investment flowed into Asia in hopes of taking advantage of high rates. Yet, this had nothing to do with actual economic productivity - it was all debt.
Then, the US decides to raise interest rates. Under ...
The expert examines small mistakes consequences in the East Asian Crisis of 1997.