Gone Gone Gone?

The narrow base of tech market leaders (FAANGs: Facebook, Apple, Amazon, Netflix, Google) sold off 3-4% Friday. But the VIX Volatility index ticked up only half a point, and remains at historic lows.

Traders are as complacent as they have been since January 2007.

Should they be? This long season of relative calm in the markets has coincided with the post-crash regulatory stranglehold that the government imposed on markets. That, plus stimulus, went a long way toward ensuring smooth sailing.

But the Republican House just voted to roll back regulation of financial markets in a big way. The CHOICE Act 2.0 follows the Trumpian zeitgeist and undoes major sections of the post-crash regulatory regime put in place by the previous administration.

Gone:  Orderly Liquidation Authority.

Gone: the Volcker Rule.

Gone: the Durbin Amendment.

Gone: the Dept. of Labor Fiduciary Rule.

Gone: treating insurers like SIFIs.

Gone, too: Market calm?