The vapours weep their burthen to the ground,
Man comes and tills the field and lies beneath,
And after many a summer dies the swan.
Alfred Lord Tennyson, Tithonus
N’en déplaise à ces fous nommés sages de Grèce,
En ce monde il n’est point de parfaite sagesse;
Tous les hommes sont fous, et malgré tous leurs soîns
Ne diffèrent entre eux que du plus ou du moins.
Nicolas Boileau-Despréaux, from the frontspiece of Mackay's Madness of Crowds
The short term demand for gold bullion provoked another exchange of units for bullion from the Sprott Physical Gold Trust.
The fund saw 1,500,000 units exchanged for 12,460 ounces of gold bullion at the rate of .008 ounces per unit. That is about a $17,000,000 transaction.
Thus a single trigger event can set off a cascade of nearly catastrophic events in a system that has been allowed to become overly fragile. And that fragility is very often directly tied to interconnected rehypothecation of assets, a mispricing of risk, and excessive leverage. That is the story of the most recent financial crisis, and why there will likely be more. They ignore the lessons of history in their arrogance and their greed. Being a sociopath or narcissist means never having to feel that you're sorry, much less say it.