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To: Ernest_at_the_Beach

Ok, color me an idiot - what, exactly, is a derivative?


34 posted on 03/07/2009 11:13:41 AM PST by patton (America is born in Iceland, and dies in California)
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To: patton
What Does Derivative Mean?
37 posted on 03/07/2009 11:19:16 AM PST by philman_36 (Pride breakfasted with plenty, dined with poverty, and supped with infamy. Benjamin Franklin)
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To: patton
What Does Derivatives Time Bomb Mean?
38 posted on 03/07/2009 11:20:58 AM PST by philman_36 (Pride breakfasted with plenty, dined with poverty, and supped with infamy. Benjamin Franklin)
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To: patton; Ernest_at_the_Beach
Ok, color me an idiot - what, exactly, is a derivative?

Don't feel alone.....even holders of Derivatives ask the same question.

Look at it this way. Derivatives are held by the underwriters of debt. Debt becomes a financial instrument that can be swapped, sold (as options) in the futures market or forwards and don't mean a GD thing when the economy sours and values fall. It's become synonymous with 'Bad Paper' lately.
58 posted on 03/07/2009 1:19:17 PM PST by BIGLOOK (Keelhaul Congress! It's the sensible solution to restore Command to the People.)
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