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Complexity also adds to the danger that any one part of the hyper-financial system can bring down the whole. (...)

I can't count the times I've heard it said that we were no longer in danger of a 1929-type scenario because, precisely, today's financial system was more sophisticated -- risk was distributed, the multiplicity of instruments permitted hedging of a kind that guaranteed resistance to shocks and stability.

Now none other than the FT is breezily saying the opposite?

by afew (afew(a in a circle)eurotrib_dot_com) on Sat Jan 26th, 2008 at 09:15:36 AM EST

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