Thanks for the correction to Doug concerning the total amounts for derivatives including the breakdown of the types. I remember I think an article in Barrons about derivatives, and that was where my memory of 60 trillion came from. I appear to have thrown that issue away or I would site the specific article. But aside from that faulty figure to be corrected by more knowledgeable minds, my question still is what about derivatives in the current currency crisis?
To put it the context that I remember from Barrons, and from various press reports over time, derivatives are relatively unreported in the financial world system, unregulated to be clear. In Russia's case the press reported there were 100 billion in derivatives involved. In addition the press reports these as taking considerable time to unwind and know who had losses. Months. Thus the banks can look good during the first stages of Russia's crisis, and then later not look good. I believe the Barron's article commented that it was thought the derivatives had not been tested in an environment of system wide crisis. In that case they (Barron's writer) thought the derivatives might not work in the prescribed way. Does anyone understand them, and are they a contributing factor to the hazards in the current crisis. They certainly seem related to the largest scale of monies involved. And little seems to crop up here about them. regards, Doyle Saylor