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Kingruv, I don't see how a handful of bad derivative trades or a hidden market could cause enough damage to bring a meltdown to the system at large. When you look at the sheer volume of what trades above board, it's mind boggling to think that what goes beneath the radar even comes close.
Greed will always exist in the system. But the others do what they can to limit what the greedy can get away with. It's easy to think there are more of them than there really are, but when you look at the numbers, it's a shame to let the few make you believe they can bring about an economic cataclysm.
In terms of the overall effect on the market, I'm sure one would have a better time criticizing the deregulation of the U.S. banking system starting in the Regan era than criticizing the effect of secret markets and rogue traders.
If we go too far in your direction, we might end up chasing bogeymen. I'm not sure that's the best way to go if we were to put political and regulatory resources to work at making the system more fair and adequately functional.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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