In the era of information transparency, is it really harder for financial crises to occur?
In the past, the ease of brewing and erupting financial crises was closely related to the backwardness of information circulation. Inconvenient communication and insufficient transparency created significant information asymmetry in the market, allowing bubbles to accumulate over time without most people noticing. When a crisis erupted, the market reacted slowly, panic spread, and ultimately evolved into a systemic collapse.
Today, smartphones and internet technology have made information transmission instantaneous and widespread. Almost every market participant can grasp news in real time, significantly increasing market vigilance. Small bubbles and localized risks are often quickly cleared by the market before they can expand. From this perspective, it has indeed become more difficult for modern society to experience the traditional type of financial crisis caused by information lag, as seen in the past.