“BS“
Tell us why.
In 1987 the system almost blew apart in the crash in October .
I have my Wall Street Journal from about a week after the market crash then .
The whole system came really close to collapsing then.
And most people were completely unaware of what almost happened then.
The “why” is fairly easy to explain. However, the insiders dont want the system fixed as it is seen as being easy money. This was caused by a financial system that allows the selling of unsecured aka “naked” shorts.
The fix is simple, when selling a future or options contract, the proceeds from that sale must be held in reserve against the future closing of that position. Should the position turn negative, then the position must be covered at the close of the day. Covering that position can be done by:
- adding cash to the reserve
- adding the underlying commodity to the reserve
- covering with another option (similar to a straddle)
That way, when the option/contract comes due, there can not be a short squeeze as all option positions are covered.
It SHOULD have collapsed in 2008. All we did was kick the can down the road and add monstrously to the debt. Had we let it collapse, we would have long since left it in the past. Obama would have been a one term president. They could have never gotten Obamacare passed. And too big to fail would be in the trash can of history where it belongs.
Because I'm not a gullible idiot.
In 1987 the system almost blew apart in the crash in October .
I have my Wall Street Journal from about a week after the market crash then .
So a market event that didn't happen 33 years ago under completely different stress conditions is supposed to explain why a different event didn't happen three weeks ago. I'm supposed to justify my belief that this is an invalid line of reasoning to you.
You've got the burden of proof here. And your copy of the WSJ from 1987 isn't quite sufficient.