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Post by unlawflcombatnt on Nov 25, 2006 17:14:10 GMT -6
Below is a copy of a summary of the world derivatives market from a link provided by BeachbumBob. This page comes from a pdf file from the BIS site. According to the BIS, the total for world derivatives in November 2006 is $370 trillion. This is an amazing number, considering world GDP is only around $40 trillion. The actual link to this is very difficult to download. For those who want to do so anyway, the actual link is at: www.bis.org/publ/otc_hy0611.pdf
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Post by lc on Nov 25, 2006 19:57:19 GMT -6
no
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Post by tatuma on Nov 25, 2006 20:42:40 GMT -6
Down the rabbit hole and through the looking glass!!
What does 10 times the world GDP have to do with any kind of REALITY???
I am sure everthing here will work perfectly, unless we encounter never before tested world situations and conditions.
I would sure be interested in finding out to what extent TIAA_CREF is invested in this garbage, not like I could get money out of it without a large penalty!! GRR
Does anyone have an idea about what a worst case scenario would look like, other than just butt ugly!
TAT
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Post by lc on Nov 25, 2006 21:41:02 GMT -6
no
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Post by tatuma on Nov 26, 2006 10:53:49 GMT -6
LC I really really really really hate it when you are right!! What is a measly 10-15% compared to the very real chances of losing big on the "spot" market! See spot run! i17.photobucket.com/albums/b66/Tatuma/spot.jpgDid I mention that I hate this? TAT
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Post by lc on Nov 26, 2006 13:52:58 GMT -6
Tactuma,
Cheetahs never win and winners never cheet
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Post by beachbumbob on Nov 27, 2006 11:38:22 GMT -6
ok...we do know that the derivatives are "zero-sum" game...but losing could crash the system....if, for example, a major institution have exposures to high risk RE loans (like fannie mae)...wouldn't that put pressure on other entites to have to cover the losses??...cashing out assets to cover derivative exposures?? causing a market selloff
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Post by lc on Nov 27, 2006 12:23:22 GMT -6
no
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Post by tatuma on Nov 28, 2006 5:30:25 GMT -6
Extra! Extra! Read all about it! Thank God someone has written the definitive tome on fine points of derivatives and hedges! Finally there can be a merger between what previously seemed to be well defined groups with little common ground, the Hedgers and the Populists tinyurl.com/y6rozsTAT
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Post by lc on Nov 28, 2006 10:43:08 GMT -6
no
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