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The last reported Gross World Product was 74.31 trillion dollars. http://www.indexmundi.com/world/gdp_%28official_exchange_rate%29.html http://www.indexmundi.c
by kindofanger 12y ago
The last reported Gross World Product was 74.31 trillion dollars.
http://www.indexmundi.com/world/gdp_%28official_exchange_rate%29.html http://www.indexmundi.com/world/gdp_%28official_exchange_rat...
Current global debt is in excess of 100 trillion dollars.
http://www.bloomberg.com/news/articles/2014-03-09/global-debt-exceeds-100-trillion-as-governments-binge-bis-says http://www.bloomberg.com/news/articles/2014-03-09/global-deb...
That alone is enough to illustrate the situation. If you must have a cherry on top, worldwide derivatives are likely in excess of 1 quadrillion dollars.
http://business.time.com/2013/03/27/why-derivatives-may-be-the-biggest-risk-for-the-global-economy/ http://business.time.com/2013/03/27/why-derivatives-may-be-t...
Regulation is a nice thought.
- CyberPants 12y agoEntire world economy visualization: https://xkcd.com/980/huge/#x=-6432&y=-8368&z=2 https://xkcd.com/980/huge/#x=-6432&y=-8368&z=2
- jrochkind1 12y agoTo illustrate what situation?
- poikniok 12y agoCan you tell me what "notational" means with regards to derivatives?
- eru 12y ago> That alone is enough to illustrate the situation. If you must have a cherry on top, worldwide derivatives are likely in excess of 1 quadrillion dollars. That's the `notional' of the derivatives. That's more or less a made up number, and has not much to do with how much money actually changes hands. The way the notional derivatives are defined, you'd actually want to see huge numbers there. It means that exploitable price differences are so small, that you need lots of gearing to make money off of them. Small price difference === other market participants get a fair price on buying and selling.