Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
The Anglo Disease - Financiers worried about end of great bull run | 42 comments (42 topical, editorial, 0 hidden)
Re: Not really (none / 0)
Could you elaborate on that?

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Mon Jun 18th, 2007 at 05:05:44 PM EST
[ Parent ]
Re: Not really (4.00 / 3)
There are two kind of financial products: exchange-traded and over-the counter.

Exchange-traded products are standarised and to some extent trackable (at least in terms of volume outstanding and traded, etc) because of regulatory requirements and those of the exchange itself. Banks provide bespoke financial products to their customers "over the counter", with very limited regulatory oversight or reporting requirements. Financial derivatives and "swaps" can be (and are) used to circumvent regulatory limits, hide transactions and holdings, reduce one's tax base, etc.

I'm suggesting that, if there were no OTC market it would be less difficult (in principle) to have an idea of where the risk is.

On the other hand, it's in the OTC market where "financial innovation" takes place.

Can the last politician to go out the revolving door please turn the lights off?

by Carrie (migeru at eurotrib dot com) on Mon Jun 18th, 2007 at 05:14:04 PM EST
[ Parent ]

The Anglo Disease - Financiers worried about end of great bull run | 42 comments (42 topical, 0 editorial, 0 hidden)
Display: