Until the financial crisis burst upon the scene, it was the stuff of sheer fiction to picture a single outfit or a small crew of actors that could tear apart the fabric of civilization as we know it. Yet the debacle of 2008, along with its aftershock, was the shot across the bow for a laid-back populace. On current trends, a calamity that lays waste to the trappings of modernity is not only possible but inevitable.
On the bright side, though, the outcrop of doomsday could be forestalled by a mere act of forethought along with the legislation to match. The fitting course of action would be plain, quick and wholesome.
On the other hand, the feat will be far from easy to pull off due to the mass of opposition from lobbyist groups. The sensible approach will require the courage of statesmen along with the backing of their constituents.
The recent crisis has shown that extreme levels of leverage can bring down the entire system of finance and economics. Thus far, the annihilation of wealth has amounted “merely” to trillions of dollars and millions of jobs in each of the major countries of the world.
Yet the carnage will not always remain so slight in the future. Whether the assailants happen to be hedge funds or other rabid players, it would make sense to defang the forces of armageddon before they have a chance to do some serious damage.
More on Armageddon in Real and Financial Markets - Regulation of Hedge Funds Driven by Speculation and Leverage.
