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How is the global derivative market bigger than the world's wealth?
i believe the global derivative market is around 700 trillion and it was 695 at the heart of the crisis a few years back. i basically understand derivatives such as swaps and CDOs but i don't understand the complex nature of it. How is it that the market is much bigger than the world's wealth(74 trillion)?
1 Answer
- Anonymous9 years agoFavorite Answer
the same way the fruit off of a tree is bigger than it's seed. or maybe, the same way the foliage on a tree is bigger than it's fruit. I dont know. which one do you like better?? or are they both stupid?