Comments on: Injecting liquidity to inflate the derivative bubble. http://usdcrisis.com/the-global-financial-and-economic-crisis/injecting-liquidity-to-inflate-the-derivative-bubble/ Financial and currency crisis in the USA Fri, 26 Mar 2010 21:21:30 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: carranza2 http://usdcrisis.com/the-global-financial-and-economic-crisis/injecting-liquidity-to-inflate-the-derivative-bubble/comment-page-1/#comment-4 carranza2 Fri, 27 Nov 2009 14:18:10 +0000 http://usdcrisis.com/?p=104#comment-4 Agree, but note that notional values on the whole have gone up while replacement cost have gone down. This IMO is not a good sign because we are going to have some monetary tremors. On the other hand, notional values are so incredibly large that perhaps change in any direction is irrelevant....would you rther get crushed by a falling Steinway or flattened by an onrushing locomotive? Notional values on interest rate derivatives were up 13% from the six months prior to June '09. The increase was on stuff maturing in more than five years. This is crazy, IMO. The taking on of crazy risk continues unabated. Agree, but note that notional values on the whole have gone up while replacement cost have gone down. This IMO is not a good sign because we are going to have some monetary tremors. On the other hand, notional values are so incredibly large that perhaps change in any direction is irrelevant….would you rther get crushed by a falling Steinway or flattened by an onrushing locomotive?

Notional values on interest rate derivatives were up 13% from the six months prior to June ‘09. The increase was on stuff maturing in more than five years. This is crazy, IMO. The taking on of crazy risk continues unabated.

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