This podcast episode delves into the intricate dynamics of market behavior and risk management through various historical crises and current practices, asserting that the nature of market risks is endogenous; market participants' actions significantly shape risk landscapes, as evidenced by events like the LTCM crisis, the 2008 financial collapse, and the evolution of volatility markets. Through the lens of increased transparency from the Federal Reserve and the emergence of technology in trading, the discussion underscores the need for a profound understanding of interconnected trades to mitigate future market disruptions, highlighting the cyclical nature of crises driven by behavioral biases and regulatory influences.
