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i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this
by ptah 7y ago
i would say getting rid of this market makes the financial system healthier. 2008 crash could have been avoided with something like this
- AnimalMuppet 7y agoWould it? It wasn't options trading that caused 2008; it was bad home loans.
- ptah 7y agoyes. the derivatives built on top of bad home loans caused the contagion. it would have been close to a non-event if there were no derivatives based on the bad homeloans. https://www.investopedia.com/financial-edge/0210/did-derivatives-cause-the-recession.aspx https://www.investopedia.com/financial-edge/0210/did-derivat... https://www.thebalance.com/role-of-derivatives-in-creating-mortgage-crisis-3970477 https://www.thebalance.com/role-of-derivatives-in-creating-m...
- kenneth 7y agoThe derivatives were traded in massive blocks, not in high-frequency transactions where fees adding up matters.