On the surface I would sat that derivatives would have the social value ascribed to them by those who deal in those markets and those affected by them. But I much appreciate what JefferyC wrote! I know little of these markets but what recently skimmed over in the links which you provided. I think it would make for an interesting conversation and most definitly be a learning experience! Thanks Slip!
On Apr 24, 1:58 am, Slip Disc <[email protected]> wrote: > We know that some people have made fortunes but is there really any > social value to what seems to be just gambling. Have we really gained > anything as a society or has it caused more ruin? > > Almost a year ago US Treasury Secretary Tim Geithner wants to regulate > the derivative > market.http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/53212... > > The wiki definition;http://en.wikipedia.org/wiki/Derivative_%28finance%29 > > Criticisms of the Derivative > Markethttp://en.wikipedia.org/wiki/Derivative_%28finance%29#Criticisms > > Below that the benefits which are clearly outnumbered by the > criticisms > > NPR discussion on the Diane Rehm show which you can listen to > here:http://thedianerehmshow.org/shows/2010-04-23/news-roundup-hour-1 > AUDIO:http://thedianerehmshow.org/audio-player?nid=12352 > > JeffreyC wrote: > > Diane, > > I am a dedicated listener and I love your show. However, today I was > very upset that none of your guests new anything about derivatives. > Their inability to describe how derivatives increase social welfare > demonstrates what little they know of finance and economics. More > upsetting is how they pretended to know and still commented, spreading > misconception and falsehoods. > > DERIVATIVES allow institutions to hedge against uncertainties, > effectively reducing risk and volatility in earnings and investment. > This is good for business as more predictable cash flows allow for > better planning and increased investment. This has a direct positive > effect on the welfare of an economy. Also, speculators are necessary > to ensure that all hedgers are able to place their hedges. The > speculator thus provides needed liquidity since all transactions need > two participants. > > THAT being said, the real topic is whether or not derivatives > transactions should only take place on a transparent exchange. > > PLEASE try to have someone trained in economics or finance on your > show when discussing matters of this type. Thank you. > > -- > You received this message because you are subscribed to the Google Groups > ""Minds Eye"" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group > athttp://groups.google.com/group/minds-eye?hl=en. -- You received this message because you are subscribed to the Google Groups ""Minds Eye"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/minds-eye?hl=en.
