Comments for http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml en-gb 30 Fri 19 Dec 2014 22:11:42 GMT+1 A feed of user comments from the page found at http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml Ed Iglehart http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=92#comment13 "It's rumoured that Gordon Brown is involved in the HBOS - Lloyds merger talks" - BBC WATORun for cover! Wed 17 Sep 2008 12:02:46 GMT+1 Ed Iglehart http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=85#comment12 Good advice, Sid.From the Financial Times (registration free, if required)"The banking meltdown has thrust the economy back to the centre of the campaign, giving Mr Obama a chance to hit back after two weeks of declining poll numbers and escalating Republican attacks....Mr Obama said the turmoil represented a “final verdict” on the failed economic policies of George W. Bush, the president, and Mr McCain, accusing them of fostering a “winner take-all, anything-goes environment”, and then doing nothing as the system collapsed.Back on the defensive, Mr McCain spent much of Tuesday repairing the damage from his claim on Monday that the US economy was “fundamentally strong” even as some of America’s biggest financial institutions were fighting for survival."Meanwhile, the carnage continues, with banks eating each other and the latest offer of "liquidity" from the Bank of England being seriously oversubscribed in minutes..."Central banks around the world pumped short-term cash into strained money markets for the second day in a row Tuesday as markets reeled amid a fast-moving crisis that is reshaping the contours of the global financial system.With interest rates on the overnight loans banks make to one another rising sharply on market unease, European policy makers boosted the amount of funds on offer. The European Central Bank injected €70 billion ($100.17 billion) in one-day funds into euro-zone money markets, more than double its Monday injection of €30 billion. The Bank of England offered £20 billion ($36.05 billion) in extra two-day funds, atop Monday's £5 billion in extra three-day funds."Money, monney, money....Who was it who suggested we should invest in wheelbarrows?;-)solvent ed Wed 17 Sep 2008 11:42:32 GMT+1 Sid http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=78#comment11 It's all very confusing. I was wondering how the Bank of England injects money into the markets. I have an image in my mind of bowler-hatted flunkies with wheelbarrows full of dosh trundling down Threadneedle Street shouting 'Help yourselves!' Is that roughly right? It seems to me you'd need an awful lot of barrows for £20 billion. perhaps I should invest in wheelbarrows? Wed 17 Sep 2008 07:50:55 GMT+1 mittfh http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=71#comment10 After reading the Wikipedia articles on Derivative (finance) and Derivative Markets, I'm not much wiser on what it's all about.However, the magic words "hedging" and "speculation", together with "hedge fund" make me think it's something that would be intrinsically difficult to explain to a layperson! Wed 17 Sep 2008 07:41:37 GMT+1 Ed Iglehart http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=64#comment9 Corporate socialismPrivatising profit, but socialising loss.;-((ed Wed 17 Sep 2008 00:52:42 GMT+1 lordBeddGelert http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=57#comment8 steelpulse - Hank Paulson did yesterday refer to the system of regulation being 'archaic', and he should know.. Tue 16 Sep 2008 11:53:08 GMT+1 lordBeddGelert http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=49#comment7 Susi - Well done for flagging this up - the time taken to read Warren Buffett's article is well repaid as it does emphasise 'If you don't understand it, don't touch it..' The fatuous protestations from these 'masters of the universe' that we mere plebeians were not 'rocket scientists' and could not be expected to understand their work, it took their huge brains to do that - and we should trust their 'expertise'... Well that is looking slightly ridiculous now, is it not ? Tue 16 Sep 2008 11:51:35 GMT+1 David_McNickle http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=42#comment6 Tbird 4, We are gals. Tue 16 Sep 2008 09:04:11 GMT+1 Ed Iglehart http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=35#comment5 Thanks to Susi Willis, here's a tasterWarren Buffet on Derivatives in 2002" The derivatives genie is now well out of the bottle, and these instruments will almost certainlymultiply in variety and number until some event makes their toxicity clear. Knowledge of how dangerousthey are has already permeated the electricity and gas businesses, in which the eruption of major troublescaused the use of derivatives to diminish dramatically. Elsewhere, however, the derivatives businesscontinues to expand unchecked. Central banks and governments have so far found no effective way tocontrol, or even monitor, the risks posed by these contracts. Charlie and I believe Berkshire should be a fortress of financial strength – for the sake of ourowners, creditors, policyholders and employees. We try to be alert to any sort of megacatastrophe risk, andthat posture may make us unduly apprehensive about the burgeoning quantities of long-term derivativescontracts and the massive amount of uncollateralized receivables that are growing alongside. In our view,however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, arepotentially lethal."Not known as "The Sage of Omaha" for nothing, our Warren....Wise and prescient, and I'll bet he makes money out of the present crash.An humble acolyteed Mon 15 Sep 2008 17:09:26 GMT+1 steelpulse http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=28#comment4 Richard Metcalfe. I noted the name. He used the word sophiscated - such people could be let alone to get on with sorting out such things as "derivatives". Did I understand him properly?I smiled immediately because the additional meaning behind the word "Sophisticated" obvious one. Skating over Robert Mugabe attempted bonhomie - the Professor who kindly explain to us the "derivative market" used the words ARTIFICIAL market.Yes I thought. There it is! Sophisticated - artificial.Ok, Eddie mayhap the latter a bit harsh undiluted or even inaccurate but look up the first word in any decent dictionary.Forget Google - I checked it. Sophisticated people, eh Mr Metcalfe? I remain unconvinced they should remain unmonitored in such a Market!Especially now, sir. Mon 15 Sep 2008 17:05:56 GMT+1 Thunderbird http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=21#comment3 ha ha ha ha, you guys............. Mon 15 Sep 2008 16:48:06 GMT+1 U11235707 http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=14#comment2 @2Well I don't mind if I do... cheers. Mon 15 Sep 2008 16:39:08 GMT+1 David_McNickle http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=7#comment1 JG 1, Single, double, triple? Mon 15 Sep 2008 16:30:18 GMT+1 U11235707 http://www.bbc.co.uk/blogs/pm/2008/09/derivatives.shtml?page=0#comment0 What about the integrals? Mon 15 Sep 2008 16:24:31 GMT+1