Hypothetical ‘$2 Trillion Disasters’ And What Not…

The term "liquidity" is the gift that just keeps on giving when it comes to providing fodder for scary-sounding stories about the inherent fragility of modern market microstructure. To be sure, liquidity is a problem, and that means anyone who wants to pen something about it is justified in sounding the alarm. It's just a matter of whether a given article does a good job of homing in on which aspect of the problem the author is looking to address - this a multi-faceted debate and the term "liqu