Derivatives implosion

Discussion in 'Markets & Economies' started by Golightly, Dec 21, 2014.

  1. Golightly

    Golightly Well-Known Member Silver Stacker

    Joined:
    Oct 4, 2013
    Messages:
    1,411
    Likes Received:
    60
    Trophy Points:
    48
    Location:
    Newcastle
    I came across this site today, in trying to understand how the derivatives market works, its completly insane gambling essentially.

    Aside from that a large portion of US derivatives market os oil and with the price drop it's leaving the big banks (top 4 have 40 trillion exposure each!) In a pickle. So what do they do? Push tohave it insured by federal government of course..

    Some good reading on this blog



    http://theeconomiccollapseblog.com/archives/tag/derivatives
     
    Golightly, Dec 21, 2014
    #1
  2. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,064
    Likes Received:
    3,292
    Trophy Points:
    113
    Location:
    Australia
    My favourite right wing loonie has an excellent course on the economy on YouTube

    [youtube]http://www.youtube.com/watch?v=7dFVFJ0iRRA[/youtube]
     
    JulieW, Dec 21, 2014
    #2
  3. wrcmad

    wrcmad Well-Known Member Silver Stacker

    Joined:
    Jan 2, 2012
    Messages:
    6,644
    Likes Received:
    1,502
    Trophy Points:
    113
    Location:
    Northern NSW
    No offence, but judging from that statement, I'd say you didn't grasp a true understanding of how the derivatives market works.
     
    wrcmad, Dec 21, 2014
    #3
  4. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

    Joined:
    Jun 18, 2012
    Messages:
    4,656
    Likes Received:
    72
    Trophy Points:
    48
    Location:
    NSW
    Pass me the dice I'm feeling lucky
     
    Caput Lupinum, Dec 21, 2014
    #4
  5. errol43

    errol43 New Member Silver Stacker

    Joined:
    Apr 13, 2010
    Messages:
    5,993
    Likes Received:
    15
    Trophy Points:
    3
    Location:
    Bundaberg
    Don't laugh about Derivatives. iT IS THE CANCER of the Corporate world...


    Understand it? LOL..nobody does but everyone should now the size of the Casino and the bets been made.

    Regards Errol 43
     
    errol43, Dec 21, 2014
    #5
  6. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

    Joined:
    Jun 18, 2012
    Messages:
    4,656
    Likes Received:
    72
    Trophy Points:
    48
    Location:
    NSW
    I trade CFDs which are type of finanical derivative. I even short gold and silver at times. I don't have any open orders at the moment but it's all good :cool:
     
    Caput Lupinum, Dec 21, 2014
    #6
  7. trew

    trew Active Member Silver Stacker

    Joined:
    Aug 24, 2011
    Messages:
    3,653
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    Melbern
    Yeah but if you take a loss it is your loss


    Nothing wrong with derivatives as long as the players all take their losses

    Why did the U.S. govt need to bail out AIG ? Why didnt they just go under and allowed to wipe out their derivative contracts ?
     
    trew, Dec 21, 2014
    #7
  8. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

    Joined:
    Jun 18, 2012
    Messages:
    4,656
    Likes Received:
    72
    Trophy Points:
    48
    Location:
    NSW
    Exactly. So long as I accept the risk, I'll trade in anything and I do

    I don't know why the US bailed out AIG and I don't really care. You should probably call O'Bama and ask him
     
    Caput Lupinum, Dec 21, 2014
    #8

Share This Page