|
Derived
Impacts |
|
Regulators
and bankers worry about the
private trading of complex instruments
known as derivatives. These
instruments remain hidden with indeterminate valuations
both on and off balance sheets of financial
institutions around the world. |
|
It is these
derivatives that
have created stresses in the broad
economy. |
|
Economic panics
and downturns are to be
expected in vibrant
capitalistic systems.
Over the
two-plus centuries of mercantilism few
downturns have placed
such broad and potentially lasting
threat upon the
total financial system. |
|
It is the
potential damage, vast complexity, and massive impacts
that concerns the US Federal Reserve, central banks
across the world, regulators,
as well as investors and speculators. All are intensely
involved in formulating and participating within
multifarious responses and the potentials that will come
to the fore in the near term. |