Friday, January 25, 2008


Vindication at last: today's Times states:
In derivatives trading winners exactly match the losers.

And so rogue trader Jerome Kerviel's loss of £3.7B is someone else's gain. I've always felt that some financial trading has a zero sum element to it, but my trader friends have always dismissed this as simply not true - giving me the impression that they are adding value in some way. Now it seems that derivatives trading is a zero sum game... with no added value. I'm now trying to think of any other profession where the overall status quo is left untouched by its efforts. Any ideas?

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