Between the explosive growth of shadow banking, the relentless rise in public debt across major economies, and stalled implementation of the regulatory reforms enacted after the 2008 financial crisis, those charged with maintaining financial stability have much reason to worry. The window to do something about it is closing fast.
WASHINGTON, DC—Traders in financial markets have long been familiar with the witching hour that comes when stock options, index options, and index futures expire every quarter. Regulators have learned to live with the market-rattling episodes that follow it. But policymakers now face a different witch’s brew that has been bubbling up for years, and that could prove far more dangerous and harder to contain.
Source:
www.project-syndicate.org
