Monday, November 23, 2015

How Would Real Capitalism Work?

The derivatives market is twenty times the total world economy. At $1.2 quadrillion the derivatives market is undefinable,  complex, unregulated, and highly profitable. Derivates are a complex set of investments that are based on future events. For example if i bet that someone who has aides is likely to die and then I can buy their life insurance policy earlier and make a profit that is a derivative transaction. But more importantly, if I take action to make sure that that person does not live longer (by restricting life-extending medications, or restricting access to information that might delay their demise, then such action would increase the value of my derivatives.  Then there are those in the "positive feedback loop" that just follow the market as it goes down and sell a proportion of their stock and hopefully countered by "negative feedback loop" that buy when it goes low and sell when high.

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