I actually think both you and the guy you are arguing with are half correct. The real answer here, in my opinion, is that yes there would be pandemonium, and t

I actually think both you and the guy you are arguing with are half correct. The real answer here, in my opinion, is that yes there would be pandemonium, and then yes, the world would go on without it, but then something else just like it will pop up. And that is because a liquid market for financial assets (whether that is securities, options on securities, futures, etc) will always be a massive benefit to the ability of businesses to conduct business, and the ability of individuals to preserve and increase wealth.