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A comment on Why Index Funds Are Like Subprime CDOs. Parent comment

Re:Why Index Funds Are Like Subprime CDOs by blacksqr on Wednesday September 04, 2019 @09:54PM (#20883209)
"Potentially making it worse will be the impossibility of unwinding the derivatives and naked buy/sell strategies used to help so many of these funds pseudo-match flows and prices each and every day. This fundamental concept is the same one that resulted in the market meltdowns in 2008."
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Re:Why Index Funds Are Like Subprime CDOs by gniv on Wednesday September 04, 2019 @10:00PM (#20883235)
The keyword there is "help". They use derivatives to handle the daily fund flows. They should be a tiny percentage of the whole fund value.
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Re:Why Index Funds Are Like Subprime CDOs by dclusin on Wednesday September 04, 2019 @10:45PM (#20883439)
You only find out who's swimming naked when the tide goes out.
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Re:Why Index Funds Are Like Subprime CDOs by blacksqr on Wednesday September 04, 2019 @11:05PM (#20883532)
Burry's point is, whatever the percentage of leverage, it's reaching levels that are dangerous for the larger economy.
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