Definition: Systemic Risk

[pico]

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system.

sorta like all the money in every book is on the lakers to cover and they did.

*not to be confused with systematic risk

[mathdotcom]

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system.

sorta like all the money in every book is on the lakers to cover and they did.

*not to be confused with systematic risk

Wow you share a definition and then show you don't understand it.

[pico]

after the lakers cover, everyone try to cash out at the same time.

[Chi_archie]

wouldn't the lakers game be akin to a individual entity in your example? the entire market included bases, wnba, ufc fighting, soccer, ect ect ect....

[pico]

just trying to do a simple gambling analogy. well, i guess there is a comparable analogy. pinny, betcris, oly and bunch of major books all had opnions on certain games, and they all went bust. now the punters who won the bet all try to withdraw money at the same time. none of them has enough reserve to cover the withdraws. plus bunch of small books went busto and it is end of the NFL season and department of justice is cracking down on money laundering. now that is something similar to a systemic risk