[–] 3dk 0 points 1 point 1 point (+1|-0) ago (edited ago)
What in the flying fuck are derivatives even? I've barely heard of them other their role in the financial crisis of 2008. I had no idea it was such a huge thing.
The way I understand it, they are nothing more than bets? So the thing with the most value in the world economy isn't industry, or services, or real estate, but these abstract bets? Is this where the money from central banks goes? I thought it was supposed to actually end up in the economy to promote growth? It all sounds inflated and completely detached from reality to me. I hope it won't all come crashing down in my lifetime.
[–] demi_god_dylan 0 points 1 point 1 point (+1|-0) ago
And it's all effectively worthless because currency as we know it is a human construct, and has no true value or purpose outside of us. However still interesting to know just how much money really is out there roughly speaking.
[–] carlos_ojeda [S] ago
Definitely! I always thought that the "physical" money would be a much more part of the "actual" money that is out there
[–] demi_god_dylan 0 points 1 point 1 point (+1|-0) ago
Why would there be more cash bill or coin, with computers such as they are and international trade being as advanced as it is, it's necessary to move a lot of money quickly, which is hard to do when most of it is cash. Also keep in mind that a lot of our money as a species is tied up in buildings, possessions of any and all kinds, stocks and savings bonds, and a whole lot more, so 5 trillion is probably on the very low side if all of that is accounted for as well.
[–] tb20 0 points 1 point 1 point (+1|-0) ago
That's why you buy and hold assets.