The Breakdown: What Are Derivatives?

May 17, 2010  |  

( — Derivatives, derivatives, derivatives! Throughout the financial crisis, the word derivatives has popped up in every corner, every hearing, every news broadcast related to the crash. Yet, they remain one aspect of the crisis shrouded in mystery; they are under-explained, difficult to comprehend and maligned by many. This week, the Senate defeated an amendment to the financial regulation package that would have weakened its controversial, but crucial derivatives language.

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