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I agree that the principal risk - and it is truly systemic - is the "rush for the exit" liquidity risk.

But beyond this, I think that the increasingly consolidated clearing houses
have become - unrecognised by most commentators - entities which constitute "single points of failure" undercapitalised for the risks that they actually run (as opposed to those they THINK they run).

IMHO, in the energy and/or metals markets at least, a "fat-tailed" market "discontinuity" is inevitable in the near future.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Apr 23rd, 2007 at 12:23:47 PM EST
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