That 60 trillion credit derivatives market the article mentions is actually wrong. The credit derivatives market is way bigger than that. The 60 trillion (actually 62 trillion) market the author mentions is the credit default swap market. There are the CDOs, CLOs, CPDOs and all that other things. The total value of the derivatives market is way more than 600 trillion in these days and most likely approaching 700 trillion. This is based on the so-called notional value but still, think about this: about 450-500 trillion of this 700 trillion is debt based. The total debt column of the global balance sheet is way less than 10% of this 450 trillion. What does this mean?
Sabri
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