Wall Street Whiplash Schools Traders on Fragile Modern Markets

  • Herding, dicey liquidity and systematic selling add pressure
  • VIX sees fastest-ever spike, recovery of at least 25 points
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Greed has overcome fear on Wall Street — and the market cataclysm that shook up the world in recent weeks may well prove a mere blip on long-term price charts.

Yet the summer rout will also go down as a particularly extreme example of a trend that’s shaped modern finance for years now: Increasingly frequent shocks blowing up with little warning.