Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Real Man who wrote (82309)	10/22/2008 5:48:01 AM
From: dybdahl	Read Replies (3) of 94695

This chart only shows that derivatives are used to predict the future lot more than previously. It doesn't show that derivatives can create a meltdown, because if you want to measure the potential impact of derivatives, you cannot sum them like that. Just summing the size of contracts is actually plain stupid: If A borrows x from B, and B borrows x from A, the sum of the contracts is 2x, but the sum to the outside world is zero. It's like Value tax vs. Value-Added Tax.

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