Risk can be suppressed in equity markets through circuit breakers and Fed backstops, but it cannot be destroyed—it transforms into other asset classes or mechanisms, so the question is not whether risk exists but where it manifests: if equities are suppressed, volatility may appear in rates, FX, or commodities markets.
causalpending
Speaker
Corey HoffsteinEvidence Quote
“risk can't be destroyed only transformed and so i was thinking about this is like so we always talk about that like you may they may be able to suppress volatility in equity markets and then everybody goes okay if they suppress it there let's let's look at like uh you know rates markets et cetera like fx markets everybody was betting that was where we were going to see volatility manifest”
Created: 8/11/2026, 1:31:56 AM
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