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Fri May 18, 2012, 04:31 AM

 

Wait, the Derivatives market is worth $1,200 TRILLION dollars??? [View all]

That's 20 times the world's GDP. Wow, Sauron has been pretty gosh darned busy conjuring up all that imaginary money. Who's going to cover this mess if it goes belly-up?

On a side note: I'm going to have to go back to economics class just to understand some of what is being said here.

http://www.dailyfinance.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP

By Peter Cohan
Posted 10:45AM 06/09/10
Posted under: Economy, Investing, Investing Basics

One of the biggest risks to the world's financial health is the $1.2 quadrillion derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy. But traders rule the roost -- and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to do so.

A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world's leading derivatives experts, Paul Wilmott, who holds a doctorate in applied mathematics from Oxford University (and whose speaking voice sounds eerily like John Lennon's), $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world's annual gross domestic product is between $50 trillion and $60 trillion.

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Reply Wait, the Derivatives market is worth $1,200 TRILLION dollars??? [View all]
Zalatix May 2012 OP
99th_Monkey May 2012 #1
jmowreader May 2012 #2
Zalatix May 2012 #3
jmowreader May 2012 #30
stevenleser May 2012 #33
Zalatix May 2012 #34
TahitiNut May 2012 #4
salin May 2012 #8
sendero May 2012 #12
salin May 2012 #28
unkachuck May 2012 #51
FarCenter May 2012 #19
laundry_queen May 2012 #27
jmowreader May 2012 #31
coalition_unwilling May 2012 #43
jmowreader May 2012 #50
Zalatix May 2012 #35
FarCenter May 2012 #39
coalition_unwilling May 2012 #42
Jack Rabbit May 2012 #48
jmowreader May 2012 #49
Jack Rabbit May 2012 #54
Waiting For Everyman May 2012 #5
hifiguy May 2012 #22
FBaggins May 2012 #6
sendero May 2012 #13
FBaggins May 2012 #15
sendero May 2012 #16
coalition_unwilling May 2012 #44
TrollBuster9090 May 2012 #7
Zalatix May 2012 #9
MadHound May 2012 #10
DetlefK May 2012 #14
magical thyme May 2012 #26
bhikkhu May 2012 #32
coalition_unwilling May 2012 #45
onethatcares May 2012 #38
Blue_Tires May 2012 #36
DetlefK May 2012 #11
coalition_unwilling May 2012 #46
PA Democrat May 2012 #17
econoclast May 2012 #18
FarCenter May 2012 #20
dmallind May 2012 #21
Taitertots May 2012 #25
Javaman May 2012 #23
eppur_se_muova May 2012 #24
aint_no_life_nowhere May 2012 #29
Bigmack May 2012 #37
bemildred May 2012 #40
bemildred May 2012 #41
coalition_unwilling May 2012 #47
Zanzoobar May 2012 #52
pa28 May 2012 #53