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If the assumed losses cause capital to fall below a regulatory threshold, the banks effectively fail the test.
In addition, heightened uncertainty about United States fiscal policy tends to cause capital to flow to safe havens – paradoxically, including the United States.
On a broader scale, Global 2000, an international committee of major banks, is planning to issue a report card on the readiness of different countries in February, a move that politicians fear could cause capital flight from lagging nations.
Further, a sovereign debt crisis will cause capital to race into U.S. dollars and U.S. assets.
In my experience, this is a high-risk behavior that can potentially cause capital loss consequences.
Because tariffs cause capital to be misallocated, we suffer lower economic growth in both the short and long run.
Similar(50)
In the early 1990s belief in the Asian growth story caused capital to flow into the region.
First, widespread corruption among party officials is causing capital flight and public discontent.
Starting in the mid-1930s, Hitler's aggression caused capital flight from Europe.
The problem is that that's easy to say, but I also recognize that globalization causes capital just to stampede throughout the world now like never before.
In Europe, by contrast, fears of government defaults — or currency devaluations if a country leaves the euro zone — have caused capital to flee across the Atlantic.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com