Quote:
Originally Posted by KidBaize
Also referred to as "Dark Pools" [of capital], they are unregulated and over-the-counter bilateral contracts that constitute a large part of current global trade. Because they are so opaque and without oversight, they pose a huge risk to the global financial system. It has been suggested that our current crisis is really the unwinding of these dark pools. And since no one knows how large the system has become, that uncertainty is adding to the daily volatility in the markets and to Bernanke and Paulson's panicked urgency for govt intervention.
One of the best articles I've read on the subject, written in July before the crisis began (very good):
Are "Dark Pools" Destined to be the Capital Markets' Next Black Hole?
It goes on to list some of these private exchanges.
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So on the one hand you want to get rid of banking (by introducing 100% reserve requirements) and at the same time you are critical of OTC trading/lending?