CNBC/Kevin Stankiewicz/2-17-2021
“[T]he brokers default on the clearinghouses, so you end up with a complete mess that is practically impossible to sort out, so that’s what almost happened.” – Thomas Peterffy, Interactive Brokers
USAGOLD note: I guess they didn’t see it coming. Why is it that these near brushes with disaster become a major source of worry and debate after the fact? Where are the regulators who are supposed to keep a lid on this sort of thing? These kinds of problems are the children of excess liquidity and rampant moral hazard. By now, we should be getting used to it, and more aware than ever, that systemic risk needs to be hedged.
