Counterparty risk (leverage that blew up on them) caused 2008, so it’s not an unreasonable take. We actually came close to it on Wednesday; hence clearing firms putting in place requirements that forced a number of brokerages to freeze purchases.
Had that happened, it would probably cause a very brief but severe flash crash, until whatever entity collapsed got bailed out the next day
The scale of counterparty risk within the dogshit CDOs combined with the sheer volume of them in 2008 is orders of magnitude larger than this though. A flash crash wouldn't come close to bringing about the change prophesied by the people claiming it's all coming down
Right; that’s why I’m saying it would be a flash crash, it would cause temporary panic, but then there’d be a bailout and it would bounce back, unlike the systemic unraveling of 2008
I was responding mainly to the part in your first comment about it not being an unreasonable take and I misinterpreted, I didn't realise you were talking about what Goldman said. Sorry, I must have jumped to it cos my tolerance for bad takes on the GME stuff is wearing super thin - I'm in a group chat containing some right wing fuckheads and call options and market crashes are their new favourite things to talk absolute bollocks about, so this week has been non-stop cringe and wanting to scream
Counterparty risk (leverage that blew up on them) caused 2008, so it’s not an unreasonable take. We actually came close to it on Wednesday; hence clearing firms putting in place requirements that forced a number of brokerages to freeze purchases.
Had that happened, it would probably cause a very brief but severe flash crash, until whatever entity collapsed got bailed out the next day
The scale of counterparty risk within the dogshit CDOs combined with the sheer volume of them in 2008 is orders of magnitude larger than this though. A flash crash wouldn't come close to bringing about the change prophesied by the people claiming it's all coming down
Right; that’s why I’m saying it would be a flash crash, it would cause temporary panic, but then there’d be a bailout and it would bounce back, unlike the systemic unraveling of 2008
I was responding mainly to the part in your first comment about it not being an unreasonable take and I misinterpreted, I didn't realise you were talking about what Goldman said. Sorry, I must have jumped to it cos my tolerance for bad takes on the GME stuff is wearing super thin - I'm in a group chat containing some right wing fuckheads and call options and market crashes are their new favourite things to talk absolute bollocks about, so this week has been non-stop cringe and wanting to scream
Ha I can imagine...