What serious problems (for compliant, prudent operators) can hide in this lack of visibility? Cowboys taking more risks than they should be allowed and making currency exchange more volatile and dangerous? Some form of failure chain reaction?
The blow up with credit default swaps in the 2008 crisis was one example of a failure that was large but looked even larger than it was before the facts got in.
The CDS crisis was mainly due to treating high risk assets, more or less by mistake or maliciously, as if they were less dangerous. Can something of the sort happen with foreign currencies? Who holds unbalanced, volatile portfolios of foreign exchange that could crash and bring them down, and why?
