[ComputerGuy]

Ah, derivatives.

[JonPreston]

I’m Dreaming of a White Christmas along with a White January, February and March 😃

[Worldtraveler once upon a time]

--- "This might seem arcane but the issues now bubbling in the derivatives sphere represent another potential time bomb for Europe — one that needs to be urgently addressed."

This is in no way arcane.

Industrial capitalism invests in the making of things for others and builds a society. Financial capitalism merely pushes capital around, making nothing in the process, and as such can tear down society. Buyouts to strip companies of assets such as retirement funds is a perfect example of the latter. Europe and the US need to return to greater emphasis on industrial capitalism, and reign in financial capitalism before that "casino" of gambling -- derivatives -- simply pops.

[zeestephen]

Link is behind FT pay wall.

Can someone summarize the issue?

My guess - most energy related derivatives ultimately require the physical delivery of the energy product by a certain date.

My guess - since Putin has shut off natural gas to Europe, there will be no product to deliver on derivative expiration dates, which essentially means that billions of dollars of underlying derivatives are completely worthless.

Energy derivatives are not just a gamblers paradise.

They are legitimately used by thousands of companies that must hedge against the price volatility of energy products.

Thanks in advance to anyone with a Financial Times subscription!

[fella]

Meanwhile the Brits are going to “Drill Baby Drill”.