http://www.futureblind.com/2008/10/economic-crisis-links-resources/ A blog about business, investing, innovation and creative engineering. Mon, 22 Feb 2010 09:50:01 -0700 hourly 1 http://wordpress.org/?v=abc http://www.futureblind.com/2008/10/economic-crisis-links-resources/comment-page-1/#comment-722 Max Mon, 06 Oct 2008 22:50:38 +0000 http://www.futureblind.com/2008/10/economic-crisis-links-resources/#comment-722 I enjoyed the 60 Minutes piece - it explained things very well. However, I think they overemphasized the role that derivatives played. Derivatives may have been one of the big causes, but what caused their usage to get out of hand? Poor risk management and misaligned incentives. In other words, derivatives by themselves don't necessarily lead to disaster. You can trade/use derivative securities (prudently) without causing a financial meltdown. I enjoyed the 60 Minutes piece – it explained things very well. However, I think they overemphasized the role that derivatives played. Derivatives may have been one of the big causes, but what caused their usage to get out of hand? Poor risk management and misaligned incentives. In other words, derivatives by themselves don’t necessarily lead to disaster. You can trade/use derivative securities (prudently) without causing a financial meltdown.

]]> http://www.futureblind.com/2008/10/economic-crisis-links-resources/comment-page-1/#comment-720 Me Mon, 06 Oct 2008 10:47:13 +0000 http://www.futureblind.com/2008/10/economic-crisis-links-resources/#comment-720 What are your thoughts on the 60 Minutes piece? http://calculatedrisk.blogspot.com/2008/10/60-minutes-wall-streets-shadow-market.html What are your thoughts on the 60 Minutes piece?
http://calculatedrisk.blogspot.com/2008/10/60-minutes-wall-streets-shadow-market.html

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