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World Stock Markets Trading Discussion - Fancy fluttering


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The creation of the "complex and esoteric" is not of "products" but of markets themselves.  Market design determines it's outcome. This result was determined by the creation of the 'market' in volatility and the aims of its creators.

 

VIX instruments for that matter any so called market instrument, stock, bond is essentially worthless...paper no claims nothing tangent....VIX as an instrument has morphed into derivatives directly linked to the expected and direct performance of stocks.  Leverage is very effective as relatively small investments can move entire markets in a self perpetuated wave as we have seen for the past 10 years.  Leverage as we just witnessed can implode when blind greed one way selling of the underlying instrument is so pronounced.

This IS the story greed and manipulation by the Fed and followers over 10 years created the negative feedback loop when savvy "investors" exposed the one-sided trade.  The savvy "investors" are not the manipulators the Fed and followers are....

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The creation of the "complex and esoteric" is not of "products" but of markets themselves.  Market design determines it's outcome. This result was determined by the creation of the 'market' in volatility and the aims of its creators.

 

Jorma that is a jaw dropping chart! Incredible! It would seem that we have done away with the regular run of the mill one sigma events and replaced them six+ sigma events punctuated by prolonged periods of "safety." Put another way instead of going to the gym once a day and facing that daily grit that Nassim Taleb calls anti-fragility we traded it all in so we could lay in bed all day for years ensuring our own fragility and then do a triathlon followed by a career change, a divorce and the loss of a loved one all in the same day and then howl about how we could have never seen it coming and we must borrow from the future to ease the pain of this entirely unexpected assault. Or like the helicopter parents who won't let their son breath but then are shocked when he has a break-down as soon as he enters the real world. How long before the next six+ sigma event? We say bring it on because we have no love of the safe place or an escape from that which forges our character.We build, compete, work hard, play hard, hunt, fish, stand with our neighbors, offer assistance where needed, and never back away from a call to meet head on the trials of life.

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