BoE: Hedge fund actions don't amplify market volatility

• Hedge fund actions do not amplify market volatility.
• Vulnerabilities in market-based finance stay.
• A commerce shift might hurt stability by miserable development.
• Banks can help the financial system, even when situations deteriorate.
• Dangers linked to commerce fragmentation have intensified.
• Dangers of additional corrections stays excessive.

Anybody who traded or adopted markets lengthy sufficient, would snicker at this line “hedge fund actions do not amplify market volatility”. They do amplify volatility and there are numerous examples with probably the most well-known one regarding LTCM downfall within the 90s.

This text was written by Giuseppe Dellamotta at www.ubaidahsan.com.



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