Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
I wonder what would happen if that money simply disappeared?  Erased from the books?  Gone forever?

The infamous "dark pools", much discussed on Zero Hedge, would evaporate. A light just went on above many, though whose assets correspond to which "dark pool" remains unclear. Consider that they are the monsters of the deep in our free (fair and balanced) markets for stocks, bonds and, especially, derivatives. We might see a reset of valuations on stock markets in particular.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Apr 4th, 2013 at 11:58:34 AM EST
Of course Bernanke could easily counter any such loss with fresh QE money for the afflicted, but might be queasy about so doing if there is enough fuss.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Apr 4th, 2013 at 12:00:41 PM EST
[ Parent ]

Display:

Occasional Series