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Speculative markets - it seems everyone is seeing them as nothing but a weapon of mass destruction. And maybe thats true. But they are also good financial tools when it comes to hedging ones investments. And they do spread risk. After all anything with the word investment in it depends on speculating. So do you think the derivative tools and market are to be blamed here? But again is this 500 plus trillion dollar market sustainable when the worlds total financial value is only about 167 trillion dollar. I mean look at what happens when one player fails to meet his obligations on one end of a bet, he takes alot of folks down with him. Lord forbid should more failures crop up, then the feds would really be in for it. Lol. So what do you think of derivatives? Please share.
So do you think the derivative tools and market are to be blamed here?
No. A long time ago Machiavelli wrote that even good institutions can be toppled by corrupt men.
Since the Enron scam, for example, corporate governance has been a buzz word in corporate organization, literature, company websites, but the last eight years or so demonstrate that, while the buzz word looks good on paper, if those charged with executing the principles are corrupt, it remains a buzz word on paper, meant to mesmerize small investors.
The same goes for derivatives and speculation: men can hedge risky investment with a view to improving productivity, or they can speculate by manipulating existing wealth to steal the saving of others.
In view of the upcoming G-20 meeting both the Americans and the Europeans have it wrong: the former want the world to spend its way out of recession, the latter want more regulation; what they should be focusing on is their own corruption.
Like addicts, all of them, unwilling to admit that there is a problem.
No. A long time ago Machiavelli wrote that even good institutions can be toppled by corrupt men.
Since the Enron scam, for example, corporate governance has been a buzz word in corporate organization, literature, company websites, but the last eight years or so demonstrate that, while the buzz word looks good on paper, if those charged with executing the principles are corrupt, it remains a buzz word on paper, meant to mesmerize small investors.
The same goes for derivatives and speculation: men can hedge risky investment with a view to improving productivity, or they can speculate by manipulating existing wealth to steal the saving of others.
In view of the upcoming G-20 meeting both the Americans and the Europeans have it wrong: the former want the world to spend its way out of recession, the latter want more regulation; what they should be focusing on is their own corruption.
Like addicts, all of them, unwilling to admit that there is a problem.
wow I was just thinking the same thing man. How no one wants to face the problem and admit it. All we hear is how will we know when we have reached bottom and how long will it take. Well ignorance is bliss, and many just want to get this over and done with. I wonder can we get away from this mess with just regulations and spending.
I wonder can we get away from this mess with just regulations and spending.
The reform must come from within, if the ruling classes still have the creativity and the energy, or it comes from without, and we get Mr Baffi and Mr Bin.
There are very useful and safe derivatives and there are those that are complicated and convoluted with questionable purpose. You cannot lump them all together any more than you can simply ask if loans are good or bad.
Speculative markets - it seems everyone is seeing them as nothing but a weapon of mass destruction. And maybe thats true. But they are also good financial tools when it comes to hedging ones investments. And they do spread risk. After all anything with the word investment in it depends on speculating. So do you think the derivative tools and market are to be blamed here? But again is this 500 plus trillion dollar market sustainable when the worlds total financial value is only about 167 trillion dollar. I mean look at what happens when one player fails to meet his obligations on one end of a bet, he takes alot of folks down with him. Lord forbid should more failures crop up, then the feds would really be in for it. Lol. So what do you think of derivatives? Please share.
Hi Timothylogan3,
Prior to WWI the world was made safe by a derivative of treaties.
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World War I
