Fukushima and Derivatives Meltdowns

It will be the task of regulators to understand derivatives and synthetic securities, and to refuse to allow their creation if they cannot fully evaluate the systemic risks.

The Derivatives Market s Helpful Enemies

The markets for other derivatives are not much better.

And, if the problem is systemically risky derivatives trading in banks and elsewhere, then the priority given to derivatives traders over nearly every creditor ought to be curtailed.

But not all investors are able to trade derivatives.

Similarly, when asked whether he should regulate the market in derivatives, he replied, These derivative transactions are transactions among professionals.

But an important disadvantage of derivatives is their short maturity.

Advanced economic systems have very complex webs of contracts, such as financial derivatives.

Regulators should insist that traded derivatives are homogenous, standardized, and transparent.

Derivatives traded on exchanges should be registered as a class.

Individual derivatives and repo transactions are hardly nefarious.

Substitution of CO by Lewis bases, L, to give derivatives Fe(CO)5 xLx.

The explosion of derivative instruments has demanded such an effort at understanding that metaphorical language is needed.

It did not require taxpayers to bail out the parent company s derivative counterparties.

Some derivatives, particularly credit default swaps should not be traded at all.

The huge losses on derivate transactions were generated by AIG s financial products unit.

To evaluate the situation of the world's young people is to evaluate the future of the world.

We are rebuilding derivatives and related financial structures atop the same, still active faults.

Derivatives can serve many useful purposes, but they also contain hidden dangers. For instance, they can pile up hidden imbalances in supply or demand, which may suddenly be revealed when a threshold is breached.

Grading Abenomics

Rating

A hundred and nine voted it a 10, the highest. Ten voted it one.

This is a clear demonstration of how derivatives and synthetic securities were used to create imaginary value out of thin air.

Assessment of risk

The public perceives Fukushima type risks and derivatives risks differently. Many fear nuclear risks, which are vivid, slowing the industry s development amid safety concerns.

The use of derivatives and other synthetic instruments must be regulated, even if all the parties are sophisticated investors.

Tailor made derivatives would have to be registered individually, with regulators obliged to understand the risks involved.

Registration is laborious and time consuming, and would discourage the use of over the counter derivatives.

Indeed, today the market for derivatives is oligopolistic, with a few banks running huge profit margins.

At this point, the government asked AIG s derivative counterparties to take a voluntary haircut that is, accept a discount on the amount owed to them.

When some of these parties refused, the government backed down and financed AIG s payment of all of its derivative obligations in full.

Plant derived Prior to Paracelsus, the vast majority of traditionally used crude drugs in Western medicine were plant derived extracts.

Another disadvantage of derivatives is that they require a high degree of sophistication both technical and political.

The calls to curb speculation in derivatives markets or short sales have this flavor.

The only plausible explanation is that tailor made derivatives can facilitate tax avoidance and manipulation of earnings.

What made the spread of derivatives possible was the ease with which the volume of debt for a given set of real assets could be expanded.

As with many meanings and definitions of capabilities evolving requirements continually shape derivatives of SIEM product categories.

A Rio Report Card

Rating the Raters

I. current situation

In depth evaluation

Aims of the Assessment of Assessments

Effectiveness evaluation report

Threat assessment