Thursday, September 25, 2008

economic crisis caused by quadrillion dollar derivative mess

What is a derivative? It's a financial instrument roughly analogous to placing bets with a bookie. The vast majority of which are not recorded on any balance sheet. These wildly speculative bets are at the heart of the ongoing global economic crisis from which there is no plausible way out as the sums involved are simply to large.

read more | digg story

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