On Sun, Oct 11, 2015 at 01:31:26PM +0200, Lodewijk andré de la porte wrote:
http://english.pravda.ru/business/finance/08-10-2015/132278-us_treasury_swap...
"There are $630 trillion in outstanding derivatives globally according to the Bank of International Settlements (BIS) in Switzerland. That is, about $630 trillion in bets placed on about $100 trillion in stocks and bonds."
Interesting (but doesn't seem citable reference to me).
How the financial market is still working?
And how such bets survived so far?
Counting derivatives as debt is definitely 100% misguided. They're also
Maybe "Counting derivatives as debt" is indeed not correct. But gambling with something you don't have is serious potential debt problem. Especially, as you note, if the shit is amplified (which is likely in a ponzi scheme like this). Somewhat related (I don't claim it is the same): https://en.wikipedia.org/w/index.php?title=Barings_Bank&oldid=684442660 --- The bank collapsed in 1995 after suffering losses of £827 million ($1.3 billion) resulting from poor speculative investments, primarily in futures contracts, conducted by an employee named Nick Leeson working at its office in Singapore. ---