ChessMaster wrote:Pick n Pay wrote:ChessMaster wrote:Pick n Pay wrote:Because no one understands these products. This is what caused the financial crisis in the US that spread around the world.
Some people do because there were some who kept saying the bubble was going to burst.But I like that they are complicated,means if you are knowledgeable you can reap profits easily.
When l clock a billion ie when l can be able to take a financial hit, l will try this. Even Merrill Lynch (the creators of this products) only made money by hyping these complex products to their clients and then betting they would fail, and fail they did. Bankers made money. Investors lost.
It was all in the the formula they used to structure their products.Any investor who could do some fundamental analysis could see its faulty. But that's another thing why would you buy something that the bankers/sellers are betting against.
Bankers bet against their clients secretly. When the party was over, they dumped the product. Unfortunately, that is the time some banks around the world, especially in Germany, were stocking up these products in their books.
However, if you feel you can handle the heat, by all means, go right ahead.
Greed is fear.