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Derivatives

Posted: Sun Jan 17, 2016 12:15 pm
by BearBones
http://money.visualcapitalist.com/all-o ... alization/

Linked to this from another thread. Nice way of showing where all of the global money is, since this comes up a lot. At the bottom are derivatives, of course swamping everything else. Controversial if they are good or potentially "financial weapons of mass destruction'" according to W. Buffett.

So if the derivative market implodes again, do we end up with another 2008 (potentially magnified greatly)? In other words, LT treasuries dominate the PP? What does gold do?

Re: Derivatives

Posted: Sun Jan 17, 2016 1:30 pm
by Libertarian666
BearBones wrote: http://money.visualcapitalist.com/all-o ... alization/

Linked to this from another thread. Nice way of showing where all of the global money is, since this comes up a lot. At the bottom are derivatives, of course swamping everything else. Controversial if they are good or potentially "financial weapons of mass destruction'" according to W. Buffett.

So if the derivative market implodes again, do we end up with another 2008 (potentially magnified greatly)? In other words, LT treasuries dominate the PP? What does gold do?
If things really go pear-shaped, I'm not sure Treasurys will do very well.

Gold, on the other hand, is the ultimate chaos hedge...