This is roughly what popped in 2008, and how it was fixed.
Right now the market is totally artificial, run for the most part by
robots, and the next blowup is going to be even worse, just
as derivative blowups got worse over time. 1987 crash was the
first one. Yes, if we get the blowup, the dollar goes
up, up, up (and vice versa, if the dollar goes up, up, up,
we could blow up)! The dollar is the new Yen, only much bigger
and a lot more liquid. And then there is that 500 Trillion
notional fixed/floating interest rates swap market, in which
the blowup could lead to sharply higher rates. But, you
never know. Each party has a counterparty, and it all depends
which side of the trade blows up.
The Fed has simply taken over and guaranteed the losing side
of derivatives, and printed a lot of money to pay up, so
that our Ponzi-financial system recovers... to the state that
caused the melt in the first place! <NG>
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