Thinking back to 2008, there was a lot of talk about the impact from derivatives that were created on top of existing investments. If I understand it correctly, they amplified the market collapse by spreading and amplifying the damage due to leverage.
Is there is still a vast derivatives market today, and does anyone have any idea where the tipping point is for dominos to begin collapsing?
Or has there been some kind of structural market change that will prevent this type of nuclear scenario?
For further consideration, who is the most exposed to potential derivative fallout?