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It sounds bad, but it's not particularly hard to get into that position. If everyone just insures their home, the value out outstanding derivates on peoples is
by hueving 10y ago
It sounds bad, but it's not particularly hard to get into that position. If everyone just insures their home, the value out outstanding derivates on peoples is already 1x. Now add in everyone that has mortgage insurance that is protecting lenders on home defaults, and you're already beyond 1x for total outstanding derivatives.
- mirimir 10y agoI had read that about Iceland, the US mortgage sector, etc. But I had no clue that aggregate global derivatives were so huge.