by Karl Denninger, Market Ticker:
Forever there has been an immutable half-joke in the markets: There is very strong support at zero.
Yesterday the CME violated that by allowing oil futures to trade with a negative price.
This, of course, came after we allowed central banks to print “negative” interest rates — that is, to literally destroy money they were given to hold.
This was a catastrophic error on the part of the CME and may prove to be fatal to financial markets and our nation generally. If you cannot set a maximum point of risk then all financial transactions must be re-computed as having infinite — that is, unbounded risk.