Essentially derivatives were invented to mitigate risk. You buy a security that represents a portion of a bundle of mortgages with a known failure rate. If it fails at 2% but takes in 4% you've got a good investment. On paper anyway.
Yes, that's more specific to mortgage related derivatives. There are many different types, I'm not going to pretend expertise beyond what I've mentioned though.
Watch the movie The Big Short about the 2007-08 housing burst bubble-I submit ALL the banks listed will fail, because USA Inc is floating on fiat digital dollars. 😒
Excellent point. My comment didn't really take the other types of CDOs into consideration and might be a bit out-dated. What other types of CDO bombs do we have exploding up in this right now would be a good follow-up question. Any ideas?
Thanks, I really wasn't joking, I know there are shorts and you can do the opposite, but not a whole lot more.
My best guess on anything would relate to COMEX, but even then the only fuckery I can think is how the Euro, US, and other currencies seem to be shifting towards a 1:1:1 and that seems impossible without fuckery.
Essentially derivatives were invented to mitigate risk. You buy a security that represents a portion of a bundle of mortgages with a known failure rate. If it fails at 2% but takes in 4% you've got a good investment. On paper anyway.
Yes, that's more specific to mortgage related derivatives. There are many different types, I'm not going to pretend expertise beyond what I've mentioned though.
Watch the movie The Big Short about the 2007-08 housing burst bubble-I submit ALL the banks listed will fail, because USA Inc is floating on fiat digital dollars. 😒
... USA inc. is bankrupt
Same thing here and now...
Excellent point. My comment didn't really take the other types of CDOs into consideration and might be a bit out-dated. What other types of CDO bombs do we have exploding up in this right now would be a good follow-up question. Any ideas?
Thanks, I really wasn't joking, I know there are shorts and you can do the opposite, but not a whole lot more.
My best guess on anything would relate to COMEX, but even then the only fuckery I can think is how the Euro, US, and other currencies seem to be shifting towards a 1:1:1 and that seems impossible without fuckery.