Why the Experienced traders Isn't Trading This

Active traders are losing to vol sellers and patient money — here's the exact mechanism.

Last Friday’s eruption was just the start of the real crisis. Markets are being backed into a corner:

• Either Trump hammers out a deal with Iran fast enough to de-escalate the geopolitics,

• Or the Fed gets forced into rescue mode.

The problem this time is that the cure and the poison come in the same bottle. Whatever the Fed injects to stop the bleeding will send rates and inflation into orbit. The transmission mechanism is jammed — more liquidity makes things worse, not better.