Saturday, April 4, 2009

I think people on financial news stations like to hear themselves say the word systemic.

Anonymous Asked,
Why do I hear the word Systemic almost everyday lately? I can count on one hand the number of times I've heard it over the previous 30 years. I doubt I have ever even used it in a sentence before today.

Now that you mention it, I must agree, I too seem to hear the word quite a bit lately. But mostly on the news when people are talking about the financial mess we find ourselves in these days. Typically though, the word Systemic is used more in medical terms when describing different systems of the body.
Here is the definition as given on Dictionary.com
sys⋅tem⋅ic 
–adjective
1. of or pertaining to a system.
2. Physiology, Pathology.
a. pertaining to or affecting the body as a whole.
b. pertaining to or affecting a particular body system.
3. (of a pesticide) absorbed and circulated by a plant or other organism so as to be lethal to pests
that feed on it.

I think you are referring to the fact that the word Systemic is heard repeatedly in the financial news. I have heard the word used by the President, several Congressmen and Senators, The Secretary of the Treasury, The Fed Chairman, and several talking heads on CNBC and Fox News. In this case the reference to systemic risk is about how certain things effect the entire economic system. Such as when a company is "To big to fail." The suggestion is, if we allow these monstrous companies to fail then they will bring down the entire financial system. Also known as systemic failure. Hopefully soon we will hear the word when discussing a recovery of the entire economic system, or maybe even a systemic change.

I heard some talk of creating a position for a Systemic Risk Regulator. I wonder if that person would report to the Economic Failure Czar. Check THIS out, and read what Fed Chairman Bernanke said during a March 10 speech. he certainly articulates an explanation of Systemic Risk better than I can.

"Systemic", It's kind of a fun word to say. It certainly sounds like an important word. I doubt I will have much opportunity to use it again after today.

This is what Mack thinks

1 comment:

  1. Steve I am really impressed. Mom

    ReplyDelete

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