4 ms·
Guesses: 1) This will be a function of how long the average person has to be out of work. 2) Honestly they seem like different beasts. An economic slowdown li
by cdiamand 7y ago
Guesses:
1) This will be a function of how long the average person has to be out of work.
2) Honestly they seem like different beasts. An economic slowdown like this is more easily understood (imho) than the last one. This graph gives me great pause:
https://www.visualcapitalist.com/worlds-money-markets-one-visualization-2017/ https://www.visualcapitalist.com/worlds-money-markets-one-vi...
Look at the size of the derivatives!
3. I think this will be a function of how long we're inside. I don't think it will be good, but I'm an optimist and I think the world economy will roar back into life once we're through it. I'm already craving a few things, like going to a restaurant.
4.Print money and enact measures (some authoritarian). The big players might make some power moves.
- jcfrei 7y agoThe size of the derivatives market is misleading. The figures represent notional amounts that means these amounts are not paid for in cash. A big share of these derivatives are likely to be interest rate swaps where one counterparty receives a fixed interest rate and the other a floating one. The notional value of these contracts can easily go into the billions but the USD value which is settled each day (and effectively transferred between the counterparties) might only be about 100k (a one basis point change on 1 billion).