Next bubble: $600 trillion?

Perhaps we have to consider the political implication of a worldwide bankrupcy again..:D

A world government:

A) fascist

B) Communist

C) Constitutional democratic federation

People in power, just got to understand the inter-connections that bind them all together.

They see everyday, angry crowds in Thailand and dragging-on Insurgency in Afghanistan.

They also have to consider the mess, failed states cause around with North Korea constantly on the verge of widespread famine.

Things will get solved, hopefully some relevant cases of fraud will advance the case of financial reforms

Even if that feed public disgust toward everything big, you don't cook eggs without breaking them first.
 
Yes, i know..derivatives are not 10 times world GDP.

But they're worth worrying, along with trade relationship, nuclear proliferation, electronic criminality and climate change.
 
Quote from rothschild:

Yes, i know..derivatives are not 10 times world GDP.

But they're worth worrying, along with trade relationship, nuclear proliferation, electronic criminality and climate change.
More...
World GDP is $60 Trillion whereas derivatives are worth $600 Trillion. So derivatives are 10 times world GDP. I think few people know this truth/fact.
 
Quote from bearice:

World GDP is $60 Trillion whereas derivatives are worth $600 Trillion. So derivatives are 10 times world GDP. I think few people know this truth/fact.
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That's silly... Derivatives are NOT worth $600 trln. How many times does this have to be said?
 
Surely with a $10, $20 or even $30billion+ endowment it doesn't need to make any more money?

Just match inflation, plus 1% (that might not be as easy as it sounds with such a large amount) and you've got millions and millions and millions to invest in teaching and teaching facilities.

Am I missing something?
 
Quote from AK100:

Surely with a $10, $20 or even $30billion+ endowment it doesn't need to make any more money?

Just match inflation, plus 1% (that might not be as easy as it sounds with such a large amount) and you've got millions and millions and millions to invest in teaching and teaching facilities.

Am I missing something?
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Yes, you are missing how much Harvard spends on teaching and teaching facilities.
 
Quote from Martinghoul:

That's silly... Derivatives are NOT worth $600 trln. How many times does this have to be said?
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Derivatives were worth $1,400 Trillion or $1,100 Trillion. Now the derivatives are worth $600 Trillion only.
 
Quote from bearice:

Derivatives were worth $1,400 Trillion or $1,100 Trillion. Now the derivatives are worth $600 Trillion only.
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As I keep saying over and over again, the gross total notional amount of $600trn has nothing whatsoever to do with how much derivatives are worth (the NPV) and what risks they represent. That is about as trivial a fact as you could get.
 
Quote from Martinghoul:

As I keep saying over and over again, the gross total notional amount of $600trn has nothing whatsoever to do with how much derivatives are worth (the NPV) and what risks they represent. That is about as trivial a fact as you could get.
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Bro, no offense, u are trying to sound smart but you are not really saying anthying. can you elaborate please.

the figure of 600 trillion as i understand it is a geustimate of total outstanding notional values.

if you are trying to use NPV as a barometer, lets say an IRR is like 5%. 5% i am using arbitrairly, does this drastically change anyting.

NPV in reality has nothing to do with counterparty risk. bottom line is, if the exposure that someone was trying to hedge becomes naked bc of lets say a bond default, a counterparty can loose the whole value of the contract and cause a dominoe efffect. who gives a fuck about NPV.

what would u geustimate is an accurate measure of exposure.
 
Quote from ballsofgold:

Bro, no offense, u are trying to sound smart but you are not really saying anthying. can you elaborate please.

the figure of 600 trillion as i understand it is a geustimate of total outstanding notional values.

if you are trying to use NPV as a barometer, lets say an IRR is like 5%. 5% i am using arbitrairly, does this drastically change anyting.

NPV in reality has nothing to do with counterparty risk. bottom line is, if the exposure that someone was trying to hedge becomes naked bc of lets say a bond default, a counterparty can loose the whole value of the contract and cause a dominoe efffect. who gives a fuck about NPV.

what would u geustimate is an accurate measure of exposure.
More...
I have already done it in another thread, maybe even two threads. Here's one:
http://www.elitetrader.com/vb/showt...0&perpage=6&highlight=eurodollar&pagenumber=1
Here's another:
http://www.elitetrader.com/vb/showt...393&perpage=6&highlight=notional&pagenumber=1
 
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