That firecracker is a hydrogen bomb, a fusion bomb that has
a small fission (plutonium) bomb inside that ignites it. If
you think about financial derivatives, then the situation is
that not so small ($30 Trillion?) part of the bomb, the credit
derivatives, has just
detonated, and the fire squad is on the scene trying to
put out the fire. -g- They might be able to do that, as,
surprisingly, the big bomb is very resilient
to small fires by design. However, every small detonation
leads to a big pile-up of fusion material -ggg-
This is not a small fire. Stocks
are a relatively tiny part of the bomb, but a very critical
part. In some sense stocks ($9 trillion derivative market)
are the fission bomb - if they
detonate, the whole thing blows by design. That is, because
asset prices are critical to credit availability. Since
it is so small and so critical, the protection team gets there
first -ggg- Moreover, by tuning this little fission bomb
(asset prices), the fire squad was able to stop the fire in
the past. -g- |
