We may not have long to wait for the collapse in the exchange-traded fund bubble. The ETF industry ran out of control long ago, but regulators can no longer ignore the retail money distorting market prices. Stuffed with exotic derivatives and super-concentrated bets on very risky markets, regulators are closing in. The steps they are taking will lead to a cascade of falling dominoes, as speculative ETFs are unwound.
Posted in Commodities, Economy, Fund Management, Stockmarket | Also tagged Brazil, CFTC, commodities, ETF, Finra, flash crash, mutual funds, Obama, Petrobras, regulation, Wall St
The Clear and Present Regulatory Danger Facing ETFs