Web of Cross-Border Investments
By Barry Ritholtz - November 15th, 2011, 12:00PM
Source:McKinsey Global Institute
Global capital markets: Entering a new era
September 2009
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
November 15th, 2011 at 12:08 pm
China…. ?
November 15th, 2011 at 12:22 pm
Thank you for posting….
Reminds me of a conversation I had with a JPM friend. With a straight face, he argued that JPM did not need a bailout in 2008/09 since they have top level risk management meetings everyday. I responded that’s nice if you cannot collect on your derivative contracts because your counter-party is insolvent, then your “assets” are not real. He would never grasp that a model is not a market.
November 15th, 2011 at 12:37 pm
A question:
What is the world derivative market?
If it is $610 trillion, then we are 10:1 leveraged on global GDP.
We are all members of the “Church of Securitization.”
Tag line: “Spending the wealth of tomorrow, today.”
November 15th, 2011 at 1:01 pm
Without also including derivatives, which might be as large (or larger) than all the items shown — combined, this is not a useful picture, other than to point out that in today’s world everything is tied to everything else.
I think we knew that already.
Isn’t McKinsey supposed to be an uber-professional bunch of consultants? Seems rather sloppy of them to ignore the derivatives exposure.
November 15th, 2011 at 1:53 pm
I wonder…does this post tell me that it is easier to construct a diversified portfolio, or impossible?
November 15th, 2011 at 3:19 pm
The real question is… which day this week do the overnight futures magically rise to open the market above this triangle?
November 16th, 2011 at 8:00 am
[...] data from The Big Picture (actually from McKinsey) on cross border investments: read article If you’re dizzy from all the numbers, read Felix Salmon’s write-up [...]