Re:A critique of the claim that passive investing is a bubble
by navigatesol on Thursday September 05, 2019 @01:23PM
(#20888889)
>Derivatives written against sub-prime holdings tipped the balance when the fan was hit
There's a bit more nuance to it: those derivatives were a problem because a substantial proportion of them were concentrated in a single, widely-connected, entity (AIG).
The derivative market as a whole nets to zero; for every loser there is a winner.
There's a bit more nuance to it: those derivatives were a problem because a substantial proportion of them were concentrated in a single, widely-connected, entity (AIG).
The derivative market as a whole nets to zero; for every loser there is a winner.