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$596 Trillion! How can the derivatives market be worth more than the world's total financial assets?

Posted by jaybol 1316 days ago, popular 1315 days ago (http://www.slate.com)
Category: Economy | Tags: derivatives economy
Iowa Sen. Tom Harkin issued a call on Tuesday for regulation of the "over the counter" derivatives market, which has an estimated size of about $596 trillion. By contrast, the value of the world's financial assets—including all stock, bonds, and bank deposits—was pegged at $167 trillion last year by McKinsey. How can the derivatives market be larger than the entire world's financial wealth?
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