Thursday, October 16, 2008

will the real number please stand up

Slate article that gives a powerful insight into market behavior.
Iowa Sen. Tom Harkin issued a call on Tuesdayfor regulation of the "over the counter" derivatives market, which hasan estimated size of about $596 trillion. By contrast, the value of theworld's financial assets—including all stock, bonds, and bankdeposits—was pegged at $167 trillion last year by McKinsey. How can thederivatives market be larger than the entire world's financial wealth?

Posted by email from Staysmall's posterous

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