happysoul77777

Four Opinions on OTC Derivatives

Derivatives need to be regulated and traded on an exchange. Otherwise, market makers can manipulate prices and crash the markets. When was it the last time you see the broad bond index was down 15% in a weakening economy?

Worse yet, the FASB accountants force the financial institutions to mark their portfolios using these (fair?) depressed prices. Derivative players know that. They use the leverage inherent in the derivatives to crash the market further.