With trading in complex derivatives with global exchanges occurring in nanoseconds with high-speed computers, no one knew what was going on in real-time, and volatility in one part of the network spread very fast. According to Haldane, in the build-up to the financial crash, many bankers had ‘an exaggerated sense of knowledge and control’.
The solution to 90% of financial problems is “save more money and be more patient.” Nothing is more powerful or more capable of moving the needle. But it’s so boring. It makes you sound like a kindergartener. Smart people don’t want to devote their careers to it. They want derivatives, high-frequency trading, offshore tax shelters and The Lightning Round.