Lynette Zang: ETF-YOU – Will You Get Screwed?

ETF investing has exploded since 2008. Are they liquid? Will you be able to sell or get your money back in the next financial crisis? Here’s Lynette…

by Lynette Zang of ITM Trading

Wealth poured into passive ETFs, exploding from $531 billion in 2008 to over $3.4 trillion in 2017 in what is referred to as the rise of the algorithms, since 90% of daily trading volume is now generated by computers. Because of the way ETFs are created and the fact that they generally hold no cash, flash crashes can be expected. Just as they blocked the oversight of OTC derivatives AFTER the LTCM derivative implosion, which led to the 2008 financial crisis, rules governing ETFs have been eased.
I believe that this will lead to wealth remaining in the fiat system during the next financial crisis.