Derivatives Deconstructed
Posted by Mary Caraccioli | Filed under Economy, Finance, Investing, banking
Most earthlings can not explain and don’t really want to understand the derivatives markets. All we know is that they were the funky financial mechanisms that brought the economy (and Hank Paulson) to its knees. You may not need to know the inter-workings of a particular derivative’s market, but many of us would benefit from having a better understanding of them, especially now. New regulation is coming to derivatives trading. Before Congress lays down the new laws, they should educated themselves on the good and the bad, the benefits and destructive possibilities of derivatives. A good place to start is this excellent article by Charles Davi of the Atlantic. -MC
http://business.theatlantic.com/mt-42/mt-tb.cgi/11862
Tags: CDS, derivatives, OTC, swaps
