Many smart people have said that credit default swaps destabilize the financial system. See this and this.But there is yet another reason – one perhaps even more fundamental – why CDS are inherently destabilizing to our economy.Remember, one of the re…
Posts Tagged ‘derivatives’
Derivatives Are Inherently Destabilizing for the Financial System Because they Increase Interconnectivity
September 29th, 2009 |
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Taleb: “Complex Derivatives … Should Not Trade”
September 28th, 2009 |
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According to Bloomberg, Nassim Nicholas Taleb said today:To curb volatility in financial markets some financial products “should not trade,†including complex derivatives … While products such as options are acceptable, he still doesn’t underst…
Satyajit Das: “Derivatives and Debt Are the Needles of Financeâ€
September 21st, 2009 |
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I have repeatedly argued that:Derivatives are still extremely dangerousThe insiders are killing any real reformCredit default swaps aren’t meaningfully being regulated, as only “standard” CDS contracts are subject to regulationEven standard contracts m…
China Threatens to Rescind Commodity Derivatives
September 1st, 2009 |
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I have repeatedly argued that credit default swap contracts be rescinded because they are continuing to drag the economy down the drain. Nobel-winning economist Myron Scholes pretty much agrees.This advice has been ignored by the powers-that-be in the …
Zero Hedge Claims that the Federal Reserve ITSELF Traded Over a Trillion Dollars Worth of Derivatives in March Alone
August 24th, 2009 |
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You know Zero Hedge, the popular website which has broken major stories like Goldman’s dominance of high-frequency trading.Some say that Zero Hedge occasionally breaks stories before adequately fact-checking them. I don’t know whether that is true or…
Derivatives Regulation: Credit Default Swaps Are Targeted In New Bill
July 27th, 2009 |
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WASHINGTON (Reuters) – Congress will consider steps to curb speculation in the $39 trillion credit default swaps market and could prohibit investors from speculating on a borrower’s credit quality, according to a U.S. House of Representatives …
Head of $25 Billion Templeton Fund: Derivatives Will Cause Another Crisis
July 15th, 2009 |
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I have repeatedly warned that credit default swaps are not meaningfully being reigned in, and that the failure to do so will cause future problems.Mark Mobius – executive chairman of the $25 billion dollar Templeton asset management fund – agrees:A new…