Blog

A structural audit of the 2008 financial crisis network: AIG was mid-tier in declared counterparty contracts but the dominant hub in derivatives flow. The gap between declared and behavioral rank is a textbook hub shadow — visible from topology alone, without reading a single balance sheet.

The Functional Proximity Law is denied for the 2008 financial crisis — r = 0.042, p = 0.824 between derivatives counterparty and direct credit exposure. This is not a failure. It is the finding. The denial has a named mechanism: institutional regime mismatch.