Derivatives Seen Causing New Crisis

The size of the derivatives market and the fact that the problems causing the recent financial crisis have not yet been resolved set the stage for a new crisis, reports Bloomberg.

The size of the derivatives market and the fact that the problems causing the recent financial crisis have not yet been resolved set the stage for a new crisis, according to Mark Mobius, executive chairman of Templeton Asset Management. Speaking at a conference in Japan, Mobius noted that the total global value of derivatives is 10 times greater than total global gross domestic product. That together with current volatility make a new market crisis likely, he said.

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