Wall Street is sifting through the aftermath of the biggest single-firm meltdown since the financial crisis. Mr. Hwang alone lost approximately $8 billion in 10 days, a person familiar with the matter said, in what traders and investors say was one of the fastest losses of such a large sum they had ever seen.
The firm’s implosion has rippled through the financial world, eroding tens of billions of dollars from the shares of media conglomerates and investment banks.
Gregory Zuckerman, Juliet Chung, and Maureen Farrell
April 1, 2021
[I”m reminded of Understanding Complexity by Scott E. Page and similar content in RIckards’ books The Death of Money: The Coming Collapse of the International Monetary System and The New Great Depression: Winners and Losers in a Post-Pandemic World
The hidden interconnectedness of entities, the unpredictable tipping points,the emergent behavior, etc. The fragility of a critical component of all modern human society could be exposed and shattered in less than a week.
I doubt that this event is “the big one” but it reminds us there could be, and probably is, such a big one hidden in the non-linear, mostly opaque, complex, world financial system. And it probably is just a matter of time before the system implodes.—Joe]