What takes other Political Journalism majors (and CTRL-C/V minors) pages and pages of verbose essays full of acronyms and meaningless gibberish to refute, Bill Gross asserts in less than 140 characters.
Gross: The crash on Oct 19 1987 showed that portfolio insurance puts were dangerous. R central bank “puts” in the same category?Very likely
— PIMCO (@PIMCO) October 19, 2012 [6]
Needless to say, he is absolutely correct.
Because just as HFT was a latent complacency "catastrophe factor" for the market, as we warned all throughout 2009 [7]and were proven correct on May 6, 2010, so the central banks have now taken over the role of ultimate vol backstopper (as Artemis has shown over [8]and over [9]), a process which will have a catastrophic outcome with absolute certainty.