• mwguy@infosec.pub
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    1 year ago

    Synthic CDOs were just one example of the problem we didn’t learn. There’s a whole logic, risk and visibility problem around derivatives of derivatives. The fact that the CFTC has suspended swap reporting, and that we have a derivatives markets that is so massive and then we have derivatives (like swaps) based on those derivatives is a system designed to fail.

    The derivatives market is over $1 quadrillion dollars large.