More important still though is who is making the mistake. Bankers are the supposed all seeing, all powerful, all knowledgeable brains of the universe. And they cannot design simple forms, or even apparently comprehend the need to do so. Now consider that these same banks have derivative loans outstanding at any time for sums vastly greater than the entire world’s GDP which if they go wrong could plunge the whole world economy into a tail spin in a few hours. They can’t prepare a bank statement but we trust them to do that. The question does have to be asked, are we mad?
I’d be fascinated to know what a derivative loan is. Anyone know? I know what a derivative contract is but not a derivative loan.
And of course while the gross amount of derivatives is large (this always being true, derivatives will always, by their nature, be larger than the underlying “real” market) it’s the net that matters. And that’s a very much smaller number.