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The lack of regulation is more of a concern than the human resource allocation or event the debt to GDP ratio. The derivatives market is valued over $700 trill
by pippy 12y ago
The lack of regulation is more of a concern than the human resource allocation or event the debt to GDP ratio.
The derivatives market is valued over $700 trillion dollars (forbes, 2013 est.), while the GDP of the world is S$74.31 trillion (2013). There's also options and swaps markets. While their benefit is dubious, deregulation has allowed these markets to ballon to ridiculous levels.
These markets keep investment capital away from more beneficial investments, such as tech firms, infrastructure and research and development. These are things we desperately need investment in. At the same time the property market doesn't need more investment, and is devastating if speculation is allowed to occur.
- tdees40 12y agoThe derivatives market IS NOT valued at over $700T. That represents the gross notional of all derivatives, but most of those trades have equivalent offsetting positions. Gross notionals are virtually meaningless.
- pkaye 12y agoUntil there is a flaw in the offsetting positions and everything collapses in a heap.