Jim Sinclair’s Commentary
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- Ski-Jump-Shaped Depression
- May Retail Sales Drop: Tentative Confirmation of
Intensified Business Downturn
- April Trade Deficit: A Negative for Second-Quarter GDP
"No. 302: Retail Sales, Trade Deficit"
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Jim Sinclair’s Commentary
Since there has not and will not be any intervention at the source of the real problem, OTC fraudulent derivatives, the downward spiral in Western world economics will continue.
Kudos to this article for getting the number right at over a QUADRILLION dollars.
Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP
By PETER COHAN Posted 10:45 AM 06/09/10
One of the biggest risks to the world’s financial health is the $1.2 quadrillion derivatives market. It’s complex, it’s unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy. But traders rule the roost — and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to do so.
A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world’s leading derivatives experts, Paul Wilmott, who holds a doctorate in applied mathematics from Oxford University (and whose speaking voice sounds eerily like John Lennon’s), $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world’s annual gross domestic product is between $50 trillion and $60 trillion.
