Wednesday, January 7
Understanding the Complex World of Derivatives
I didn't expect to laugh out loud when reading my Investments textbook, but the fact that I'm using the fifth edition (which Kristi bought in 2002 at Madison) instead of the current eighth edition means I get to read things like this...
"What are derivatives anyway, and why are people saying such terrible things about them? Some critics see the derivatives market as a multi-trillion-dollar house of cards composed of interlocking, highly leveraged transactions. They fear the default of a single large player could stun the world financial system. But others, including Federal Reserve Chairman Alan Greenspan, say the risk of such a meltdown is negligible." Ah, hindsight.
In case you're interested, the entire book is available in a single PDF, courtesy of the School of Economics at Shandong University.Labels: finance, nerd, school
posted by Brad at 1/07/2009 09:33:00 PM | permalink |
0 comments
|