Synthic CDOs were just one example of the problem we didn’t learn. There’s a whole logic, risk and visibility problem around derivatives of derivatives. The fact that the CFTC has suspended swap reporting, and that we have a derivatives markets that is so massive and then we have derivatives (like swaps) based on those derivatives is a system designed to fail.
The derivatives market is over $1 quadrillion dollars large.
It’s like we didn’t learn pur lesson in 2008
Im not entirely sure this specific issue has much to do with Synthetic CDOs.
Synthic CDOs were just one example of the problem we didn’t learn. There’s a whole logic, risk and visibility problem around derivatives of derivatives. The fact that the CFTC has suspended swap reporting, and that we have a derivatives markets that is so massive and then we have derivatives (like swaps) based on those derivatives is a system designed to fail.
The derivatives market is over $1 quadrillion dollars large.
Yup, this site has a really interesting graph if anyone is interested.
Though it states 12.4 trillion or 600 trillion depending on valuation type.
https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2022/
Probably not too much but a key lesson was that the housing market is pretty fucked up
Well, some tried to start a movement, but the police came eventually to stop it.
I learned that the working class faces ahead of it a long struggle , and has no friend in ACAB.