“…if the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency together with other products, then a large cryptocurrency price move that destabilizes members that clear cryptocurrencies will destabilize the clearing organization itself.”
But this is the kind of thing I’m talking about when it comes to markets not appreciating the extent to which everything is now tied up in self-feeding dynamics that no one appreciates.
“Now thank Xi.”
“…the nagging fear that the boy who cried wolf was only telling the truth when everyone had learnt to ignore him.”
You people are an irrational bunch and you always have been.
The setup was terrible, with falling commodities, a downbeat Asian session, and junk jitters weighing on sentiment.
What Bannon does now may well determine whether he retains his influence going forward.
It’s all about “loops” and “spirals” these days.
But times have changed.
“Many of these same investors, however, tend to agree with us on a two year view that things are likely to end very badly.”
Donald Trump is done with Asia. He’s so over it.
Something tells me that if we do get a truly meaningful selloff in HY and/or EM credit, this is going to be the only thing anyone is talking about.
Not what I would call an “upbeat” session.
… but the far more important question is whether any of the three explanations posited above have any merit. Because if they do, we are in deep shit as a society.