Re:Stock buybacks are dangerous for the economy
by paganel on Tuesday March 17, 2020 @06:34PM
(#22611308)
> A lot of trading is done via indexes.
Indexes are today's CDSes, it baffled me how many people were defending them (in fact, I'm pretty sure the vast majority of people still defends them in one way or another) when in fact it had been visible for at least 3-4 years that they're the new "too big to fail" thing that will bring the whole edifice down at the first signs of weakness. We never learn, we always like to think that there's some silver bullet in finance that will make us earn money almost for ever with close to no risks.
Indexes are today's CDSes, it baffled me how many people were defending them (in fact, I'm pretty sure the vast majority of people still defends them in one way or another) when in fact it had been visible for at least 3-4 years that they're the new "too big to fail" thing that will bring the whole edifice down at the first signs of weakness. We never learn, we always like to think that there's some silver bullet in finance that will make us earn money almost for ever with close to no risks.