Comments on: Size of the derivatives market http://langabi.name/blog/2008/10/17/size-of-the-derivatives-market Paul Cook's blog Sun, 01 Aug 2010 10:43:44 +0000 http://wordpress.org/?v=2.6.2 By: tompainejr http://langabi.name/blog/2008/10/17/size-of-the-derivatives-market#comment-17585 tompainejr Wed, 16 Sep 2009 19:05:55 +0000 http://langabi.name/blog/2008/10/17/size-of-the-derivatives-market#comment-17585 The Bank for International Settlements announced a total derivative market of $1.14 quadrillion last summer and I'm anxiously looking for an update. In the December 2008 issue of "The Atlantic" I found hope that this scheme would be exposed and remedied. Gao Xiqing, President of the China Investment Corporation, said, "If you look at every one of these [derivative] products, they make sense. But in aggregate, they are bullshit. They are crap. They serve to cheat people." He added, "I think we should do an overhaul and say, 'Let's get rid of 90% of the derivatives.' Of course, that's going to be very unpopular, because many people will lose jobs." He went on to say, "We can get all the relevant people together and think up what people are calling a second Bretton Woods system, like the first Bretton Woods system did." Sad to say that some months after this interview it was announced that China was entering the derivative business. The Bank for International Settlements announced a total derivative market of $1.14 quadrillion last summer and I’m anxiously looking for an update. In the December 2008 issue of “The Atlantic” I found hope that this scheme would be exposed and remedied. Gao Xiqing, President of the China Investment Corporation, said, “If you look at every one of these [derivative] products, they make sense. But in aggregate, they are bullshit. They are crap. They serve to cheat people.” He added, “I think we should do an overhaul and say, ‘Let’s get rid of 90% of the derivatives.’ Of course, that’s going to be very unpopular, because many people will lose jobs.” He went on to say, “We can get all the relevant people together and think up what people are calling a second Bretton Woods system, like the first Bretton Woods system did.”

Sad to say that some months after this interview it was announced that China was entering the derivative business.

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