EconoFiction

What Black-Scholes-Merton means to a speculative materialist

25 Mai , 2020  

Even those persons paralyzed by anxiety over their lack of knowledge of financial economics will intuitively grasp that uncertainty pervades an attempt to ascertain what will have been the value of an asset in the future, relative to its subsequent past value now in the present. Can this even be done? ...

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EconoFiction

Derivatives are Speculative Capital

3 Okt , 2019  

In recent decades, an ever-increasing proportion of the profits of private banks has been generated by financial activities far beyond mere borrowing and lending of money. Commercial banks generate their profits through the endogenous creation of credit and through the trading of foreign exchange and, in particular, securities and derivatives. ...

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EconoFiction

CAPITAL IS FINANCE – THE FOUNDATIONS OF A MARXIST FINANCIAL THEORY

22 Jul , 2019  

The “financial deregulation” since the 1970s has paradoxically in themselves the capacity and increase the demand for regulation, regulatory instruments, and regulatory agencies. The strengthening of market mechanisms at all levels requires a number of public, sub-state, and especially private, companies and institutions whose duplication and dissemination take on the ...

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EconoFiction

Synthetic Structured Financial Instruments

19 Jan , 2018  

An option is common form of a derivative. It’s a contract, or a provision of a contract, that gives one party (the option holder) the right, but not the obligation to perform a specified transaction with another party (the option issuer or option writer) according to specified terms. Options can

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