by Richard Duncan
Richard Duncan Economics
Eight years after the near implosion of the international financial system came close to plunging the world into a New Great Depression, and six years after the Dodd-Frank Wall Street Reform and Consumer Protections Act became law, Half A Quadrillion Dollars worth of derivatives contracts are still trading Over-The-Counter (OTC) with limited transparency and insufficient oversight.
The latest Macro Watch video examines what progress has been made in reducing the threat posed by these “financial weapons of mass destruction”.
We begin by asking why derivatives were deregulated in the first place. Was it simply stupidity? Was it greed and political corruption? Or was there more to it than that?