I'm interested in your perspective regarding the 700 Trillion SWAPS market & its potential impact.
A privately held SWAPS market of this much size ($700 trillion) is a risk. The credibility of the market depends upon the performance of the underlying assets and the parties who are transacting. Simply because it is a secret private affair does not mean that credibility is not there. But there should be a sort of regulation and control in such huge markets because if anything adverse happens, it spreads like a contagion and precipitates a parallel economic crisis in which those not involved in the deal are also affected very much.
So, to understand, I need to ask;
Is it the mere size that troubles you? The "Secret Private affairs" you mention; Is there reasonable transparency?
Are there sufficient "Underlying Assets", actual Capital requirements, to ensure averting a systemic failure?
$700 Trillion, whats that like the value of the U.S.A.?
by qwark6 years ago
A billion:A billion seconds ago it was 1959!A billion minutes ago jesus alledgedly lived!A billion hours ago our ancestors were living in the stone age!A billion days ago no one walked upon the earth on 2 feet!Now,...
by mrpopo2 months ago
I highly recommend this one: https://youtu.be/aMcjxSThD54This interview is a microcosm of modern social discourse - or at least, some aspects of it.
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