In a paper published in 1999, Martin Mayer of the Brookings Institute wrote, “The system is easily gamed, and it sacrifices the great strength of banks as financial intermediaries -- their knowledge of their borrowers, and their incentive to police the status of the loan.” In the 15 years that have passed since “The Danger of Derivatives” was
The Big Gamble: Deritiative Trading Remains The Wild West Of Financial Markets
The total value of financial derivatives may be 20 years of total world product, much of it set up as nothing more than a gamble. But it remains unregulated because of its complexity and international unwillingness to tackle the problem.
Por Erik Hare
