Everyone discusses them; few fully understand them. So politicians misuse them for their own purposes.
Derivatives are a financial necessity. They are a form of side bet that helps reduce the risk of a financial transaction. It is a device that has been in use by commodity merchants for at least a century and a half. It protects the investor, against the possibility the price trend of the original investment goes wrong. And it is perfectly legal AND ethical.
Some derivatives are easily listed on an exchange because they are simple. And they contain some collateral in case of a market downturn. But not all derivatives can be worded simply. Some say only bankruptcy courts can handle their settlement.
So forget the diatribes against firms who write derivatives and are on both the buy and sell side at the same time. It’s reasonable.
Politicians who are ignorant of the process and their media hand- maidens are deluding the public by carrying on about fraud.
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