Comment: $600 Trillion Exchange! New Reality of Derivative Trading

(See in situ)

$600 Trillion Exchange! New Reality of Derivative Trading

Why buy what is real... when $600 trillion buy all you can eat of what is not! Diet exchange trading...

derivatives: No calories. Less filling. Nutrition: 0% Fat. 0 Calories.

This takeover illustrates starkly how trading in commodities and derivatives has become much more lucrative than trading in the shares of companies. Warren E. Buffett warned in 2003 that the “derivatives genie is now well out of the bottle,” and that the genie, even after a global financial crisis, was not going back. Currently, derivatives — financial bets tied to underlying assets like oil prices or interest rates, among other things — are a $600 trillion market. Even the parent of the N.Y.S.E. attracted its suitor largely because of its ownership of Liffe, a major derivatives exchange in London.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul