Institute of Contemporary Development Chairman Igor Yurgens writes for Rossyiskaya Gazeta that surrogate money, which penetrated deeply into the financial system, triggered the global crisis. The fact that such money even exists makes investors nervous, Yurgens writes. That’s why the measures that various governments have taken have not calmed the markets, and the fever on the stock exchanges continues.
Yurgens explains that he speaks about a special kind of securities: derivatives. They are the so-called the derivative financial instruments, connected with regular securities and in fact function as virtual money. So many of them have been issued that no one know how many are floating around the world. The experts estimate the global derivatives market at $600 trillion, Yurgens adds.
He says that the derivatives, connected with American mortgage bonds, detonated the global financial crisis, the underlying causes of which are, of course, more fundamental.
The article was quoted by RIA Novosti, Business FM, Mfd.ru, Bankir.ru, Utro.ru.