The Oil Drum

232 comments on DrumBeat: October 27, 2006

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mjfrazer on October 27, 2006 - 9:32am

Eric Sprott on the state of the markets:
http://www.sprott.com/pdf/marketsataglance/10-2006.pdf

Among other goodies:

Another major risk in our opinion is the ever-burgeoning derivatives market, a theme that we frequently return to. According to the latest data from the Bank of International Settlement, the total notional amount of outstanding derivatives is approaching $300 trillion, and is being traded (notionally) to the tune of almost half a quadrillion dollars per quarter. These are mind boggling numbers. To put them in context, US GDP is a comparatively paltry $12 trillion. We continue to hold the view that the derivatives market, where everybody offloads risks to somebody else and nobody ever seems to lose money, is a time bomb waiting to explode.

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steverino on October 27, 2006 - 6:02pm

sorry mj, i'm just tagging along to the beginning of the thread...but..honk if you're wondering, "what happened to the ASPO-USA confence coverage?"

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Leanan on October 27, 2006 - 7:15pm

I don't think they're planning to blog from the conference. They'll report when they get back.

I did post a couple of articles from the MSM. The Reuters article about Simmons, and the article from the BU paper about protesters disrupting the conference.