How to prepare for a banking crisis?

Part I: Counter-cyclicality in crisis preparation

Like we warned on Saturday, 1 October, we have reached a point, where a new global banking crisis can ignite practically at “any minute”. In practice, however, we probably have some time to prepare.

In the previous post, we opened the ‘Pandora’s box’ of a banking crisis, and in this one we concentrate on how households and investors, but also corporations can prepare for it.

The idea of preparing for an economic downturn or a crisis rests on the idea of countercyclicality of  Keynesian economic theory. Next we present what it implies to households, corporations and investors.