The London Metal Exchange reversed $12 billion of nickel trade all because it was on the wrong end of a short squeeze. Turns out the nickel contracts were backed by bags of rocks, not actual nickel.
When the LME was sued for breach of contract, the judge cited "systemic risk" as for why it's okay when they do it.
Get used to seeing those words more and more: systemic risk. Because being an overleveraged, degenerate gambler with other people's retirement money will destroy the entire system if they're actually forced to pay.
The London Metal Exchange reversed $12 billion of nickel trade all because it was on the wrong end of a short squeeze. Turns out the nickel contracts were backed by bags of rocks, not actual nickel.
When the LME was sued for breach of contract, the judge cited "systemic risk" as for why it's okay when they do it.
Get used to seeing those words more and more: systemic risk. Because being an overleveraged, degenerate gambler with other people's retirement money will destroy the entire system if they're actually forced to pay.