Dubai Forums Dubai Discussions Dubai General Chat

goddamn derivatives sh*t, want to know why you're paying so much at the pumps? (OK in the UAE we're not....).

Speedhump wrote:

Misery Called Life wrote:Am so bored and sleepy rit now. Need to be studying derivatives!

Oh, you want to be the cause of the next economic crisis eh???

Here buy my mortgage debt from my lender, I can't afford to pay it so you'll get it nice and cheap! :d

It's too simplistic to blame derivatives for the financial crash. The fault lines were in fact embedded into the system. Regulation or lack of it is cited to be the single most contributing factor to the current mess.

In accountancy I always argue that for major companies mark to market shouldn't hold that much importance.
Why did AIG require a bailout? No it wasn't because the entire company failed. One department suffered owing to certain circumstances, mainly the Lehman Brothers collapse.
It was in fact a collateral call on AIG's CDS position's that led to the failure of the banking giant. A stupid collateral call, owing to mark to market accounting. Mr. Obama the shroud man that he is, exploited the situation till it could be exploited no more. Poor employees didn't even get their bonuses, that too after 70 hour weeks.
And we all know in the finance sector bonuses are everything. Salaries tend to be quite measly.

You can't blame a regulatory system for financial tools which were so murky that the institutions who invented them didn't even understand them. Everyone knows that pyramiding of capital will come to a nasty end eventually. Self-control by the financial instiutions shoud have been the key, not Government imposed restrictions, stifling creativity everywhere. It's easy to look back and blame anyone and everyoneof course. Any company that overextends its positions to the extent that was done all around the globe and believes it can enter any number of new and unrelated markets which it doesn't understand, ussng money that it doesn't have, deserved a whopping.

Plus in my (and OPEC's) opinion, the unrestricted trading of oil derivatives (we're away from collateral bonds etc now, and into pure paper trading of commodities) led to the horrendous oil price spike last year, and is even starting up again now.....

Speedhump wrote:Plus in my (and OPEC's) opinion, the unrestricted trading of oil derivatives (we're away from collateral bonds etc now, and into pure paper trading of commodities) led to the horrendous oil price spike last year, and is even starting up again now.....

Yea I read that!

And to be honest I really don't know what to make of it. I don't follow commodities all that much.

But if the OPEC really wants to keep speculation at bay, then they could always adopt a Price Band Mechanism.

I think ultimately it boils down to supply and demand. You can't write a futures contract to sell oil at 150 dollars a barrel and forever expect buyers. At that price you only get buyers if there is a supply problem.

Misery Called Life wrote:

Speedhump wrote:

Misery Called Life wrote:Am so bored and sleepy rit now. Need to be studying derivatives!

Oh, you want to be the cause of the next economic crisis eh???

Here buy my mortgage debt from my lender, I can't afford to pay it so you'll get it nice and cheap! :d

It's too simplistic to blame derivatives for the financial crash. The fault lines were in fact embedded into the system. Regulation or lack of it is cited to be the single most contributing factor to the current mess.

In accountancy I always argue that for major companies mark to market shouldn't hold that much importance.
Why did AIG require a bailout? No it wasn't because the entire company failed. One department suffered owing to certain circumstances, mainly the Lehman Brothers collapse.
It was in fact a collateral call on AIG's CDS position's that led to the failure of the banking giant. A stupid collateral call, owing to mark to market accounting. Mr. Obama the shroud man that he is, exploited the situation till it could be exploited no more. Poor employees didn't even get their bonuses, that too after 70 hour weeks.
And we all know in the finance sector bonuses are everything. Salaries tend to be quite measly.

Don't worry, thats about to change I hope.

Away with the bonuses and the greedy incentives, simply switching to as decent base pay with a little bonus cap suits you guys fine. You earn enough already. Measly he says, not looking into perspective with the normal man on the streets....that is.

Mr. Obama was soft on you financial guys. He made sure you kept your job, not get a bonus and pay the bailout money to withold the sector from utter collapse. Guess who's measly salary is paying your bailouts?

Regulation is the problem indeed, but with the pace of innovation and creativity you guys often show, its simply keeping ahead of the curve (in front of the slower regulatory bodies) and launder those large sums of money with compicated derivatives, some of you don't even understand anylonger.

Its crazy dude. Try to get some balance in your need for greed, or we will end up with the same mess in another 30 years. Its time for some moral and ethics in business.

Fortunately Harvard is implementing it in the curriculum now, after years of greedy salary expectations from its scholars.

Misery Called Life wrote:

Speedhump wrote:Plus in my (and OPEC's) opinion, the unrestricted trading of oil derivatives (we're away from collateral bonds etc now, and into pure paper trading of commodities) led to the horrendous oil price spike last year, and is even starting up again now.....

Yea I read that!

And to be honest I really don't know what to make of it. I don't follow commodities all that much.

But if the OPEC really wants to keep speculation at bay, then they could always adopt a Price Band Mechanism.

I think ultimately it boils down to supply and demand. You can't write a futures contract to sell oil at 150 dollars a barrel and forever expect buyers. At that price you only get buyers if there is a supply problem.

In fact that's all wrong. OPEC can't control the main crude trades in West Texas Crude and Brent Crude. They also are happy despite what they say to reap the benefit of $100+/barrel crude oil when it's there, while saying 'tut tut, it's a shame, we must try to bring it down'. Until it kills world trade and they can't sell any....plus they all love to cheat on the quotas they impose on themselves (usually except Saudi who as swing producer are left to pick up the pieces after it goes pear-shaped). The statements of the OPEC oil ministers would often make good fairy stories for kids.

The price of crude oil has not been affected (hardly at all) in recent months by supply/demand factors, markets are awash with oil of all descriptions, but mainly by speculators (the massive hedge funds, etc), buying and selling over and over, making money on the rise and fall of prices. Buying forward is one thing, but selling forward (shorting) is where it really screws up the mechanisms. Now that's somewhere that legal frameworks could be put in place I agree.

I think we hijacked this thread. Last post from me then!

Speedhump wrote:I think we hijacked this thread. Last post from me then!

Don't worry, the mood is simply this: 'Despise of investment banker employees'

Notting to worry about

The CFA code of conduct and Ethics was always in place but never subscribed too. Hopefully post this crisis honest degrees like CFA get a boost.
The crux of the problem is ignorance. Lot of people treat stocks, derivatives etc. like gambling. Like winning a lottery. That's when they are open to manipulation. If people are willing to invest their hard earned money with such funds a lil homework can take them a long way. It's greed which makes these people invest so blindly.

And unethical finance pro's took advantage.

Greed will always be a human trait. Only regulation can curb that.
Lets see what the future holds.

Mood:- Feeling good! Will go to study derivatives now.

Misery Called Life wrote:Mood:- Feeling good! Will go to study derivatives now.

Rehearsal in 60 minutes

not so good. hopefully tomorrow will be okay

Hmm!.. feeling Good!.. I have smile!......

feeling great as the weather is still good.

Yet another heavy weekend culminates. The mind is spinning wildly.

Time to look ahead to another week of equity markets, studying and job hunting!

No wonder your life is Misery...

smokedawg wrote:No wonder your life is Misery...

SD, are you talking to MCL?

Scared -- I have history exam after three days and I haven't studied anything...

GEM wrote:Scared -- I have history exam after three days and I haven't studied anything...

What era do you want me to lecture for you

I'll help you out.

Just over ate. Feeling so heavy.

Happy !!!

Trying to stop smoking

The battle with hangover is almost won. Have to selebrate.

Leda wrote:The battle with hangover is almost won. Have to selebrate.

With champagne!!!

Speedhump wrote:

Leda wrote:The battle with hangover is almost won. Have to selebrate.

With champagne!!!

Just got over another birthday, so just white wine... just white wine, Leda...

J-pop deep and loooong today! :

Bored already, getting heavier

http://uk.video.yahoo.com/watch/2318622/7282306