Derivatives is a term used in calculus. In the financial markets it is abstract and cruel. It is more cruel than a Margin Call.
The Derivatives Market perverts reality. It takes a purchase of a company stock as if a virtual garage sale. It takes the 'entire' of the asset of a business turns it into a commodity, sends it on a time warp and plays with the value as if all were available for disposition.
It is nuts.
Then the derivative can be swapped and there can be more money based on more air contained in another companies assets.
It is based on 'notional amounts.' Equity, interest, Currency, Total Returns based in values of LIBOR. And the consequence is they lose a lot of money. It's gambling based in values DERIVED from Financial Market Values.
There is no morality here. It is pure unadulterated greed. It does nothing to add to the value or PRODUCTIVITY of a company. It does not add assets to anything except individual accounts for those that WIN.
Like an interest rate swap, (click here) a currency swap is a contract to exchange cash flow streams from some fixed income obligations (for example, swapping payments from a fixed-rate loan for payments from a floating rate loan). In an interest rate swap, the cash flow streams are in the same currency, while in currency swaps, the cash flows are in different monetary denominations. Swap transactions are not usually disclosed on corporate balance sheets....
Invisible money. What? You mean there aren't exchange rate swaps within the currency swap? What chicken livered investors you all are.
They should be outlawed. There is nothing real here. It appears real because the numbers come from real investment paradigms, but, the PLAY is not based in something that actually and concretely happens with a company or a product. This is playing with market dynamics as if a game board. The consequences are real, but, the dynamics are all contrived. There is nothing real life about it.
The Derivatives Market perverts reality. It takes a purchase of a company stock as if a virtual garage sale. It takes the 'entire' of the asset of a business turns it into a commodity, sends it on a time warp and plays with the value as if all were available for disposition.
It is nuts.
Then the derivative can be swapped and there can be more money based on more air contained in another companies assets.
It is based on 'notional amounts.' Equity, interest, Currency, Total Returns based in values of LIBOR. And the consequence is they lose a lot of money. It's gambling based in values DERIVED from Financial Market Values.
There is no morality here. It is pure unadulterated greed. It does nothing to add to the value or PRODUCTIVITY of a company. It does not add assets to anything except individual accounts for those that WIN. Like an interest rate swap, (click here) a currency swap is a contract to exchange cash flow streams from some fixed income obligations (for example, swapping payments from a fixed-rate loan for payments from a floating rate loan). In an interest rate swap, the cash flow streams are in the same currency, while in currency swaps, the cash flows are in different monetary denominations. Swap transactions are not usually disclosed on corporate balance sheets....
Invisible money. What? You mean there aren't exchange rate swaps within the currency swap? What chicken livered investors you all are.
They should be outlawed. There is nothing real here. It appears real because the numbers come from real investment paradigms, but, the PLAY is not based in something that actually and concretely happens with a company or a product. This is playing with market dynamics as if a game board. The consequences are real, but, the dynamics are all contrived. There is nothing real life about it.
