Part 1 -- What the Heck is a Derivative?

[chaz1346]

I laughed out loud when they cussed back and forth...Great job! and thanks

[TheAviator365]

Crap ..didn't have to cuss....but nice simple video explained nicely. Thanks.

[2020starman]

Huffington Post suck my wang you commies

[InsaneHands2]

She is Sexc and when she cursed she got that much sexier

[G3XRevolution]

very nice video! great explanation of credit derivatives. But after she pays you a fee in case the company cant pay her back, and you pay someone else, what are you paying them for exactly?

[Panoskol]

@G3XRevolution you are paying them to give you money to pay her in case the company goes bust

[billmeradeia]

Her voice is fine, she's smart and she's hot. rated.

[hottyfromnotty]

Very good video, informative, and nicely explained...10/10

[simonsrd100]

Derivatives mean that you group bad debts sell them on as good dept the buyer is unaware that they are bad dept this is hedging now 1500 trillion derivatives are about to go globe .

[B1K1N1B1K1N1]

I like your explanation but I cannot see how the people further down the chain benefit by insuring someones risk, if they are just going to turn around and give the fee that they just got to another person to insure them against a default. Could you please send me a message and tell me what I am not getting?  Thx

[Panoskol]

@B1K1N1B1K1N1 in order for this to work, the fee you pay must be smaller than the fee u got payed, so there is always a profit. The fee obviously gets smaller, the lesser the risk is, which after all appears to be so that far in the chain.

[Jbo1996]

Derivatives are down right evil based on speculations. I see a future with less derivatives as a much better one. I have worked with derivatives and most people I talk to have no clue as to what they are. Like this dumbass I know from HSBC that claims to be a derivative analyst but yet he can't explain what is it that he does exactly. What a freaking piece of derivative ass.

[sirries1]

Women are not chicks. nice video.

[amordepapel]

Thanks so much. Finally, someone speaks in clearer terms.

[leone20012]

"yeah and thats totally FUCKED UP" lol

[MixMeAdrink]

what does hedge mean?

[1Nyro]

@MixMeAdrink

From what I understand it's a bet against something, like for a horse to lose.

[DMBalchemy]

@MixMeAdrink hedging a bet is like insurance so that you don't lose everything you bet on the chance that you do lose. It would be like betting 10 on red in roulette and 3 on black. If you win red, you win, but if it lands on black you lose, hedging is just making sure that IF you do lose, you don't lose as much(covering your ass if you lose). (In these financial bets the sides aren't always going to be equal, so don't look into the value of the roulette example. Just theory.

[Fuchizaa]

Nice vid and very good explanation. Hot chick too.

[joshaf26]

I think I actually understand this now. THANK YOU.

[pibada2]

wrong. you can trade the value, meaning the next guy in line has the option to buy or sell from you at a higher or lower price.

[freespeaker69]

@IntellectualConcepts Do you have a real "intellectual" beef with my video? I'd ask you to stop and think the next time you call someone a stupid whore. There's a real person on the other end -- someone who has worked for years to understand our economy and try to end the suffering caused by economic ignorance. If you've got something substantive to add to the debate, please speak up. Otherwise, please be silent.

[jtarantula3390]

@freespeaker69 intellectualcomments/idiot is just going around making racist and homophobic remarks, spam his cooments, and take care, bye

[lpeeko]

@freespeaker69

Hey Julie Satow!

THANK YOU for helping me understand this. I'll look forward to watching any further vids you choose to make. You too, Jason Linkins! Well done, you guys! You're doing a good thing!

[lubangad]

@freespeaker69 Am surprised that you even bothered to answer this idiot. The girl explaining is intelligent and very sweet. Mad world really!

[OpieJohansen]

@freespeaker69 I agree with you freespeaker69. Not only is Julia super smart, but she is super cute --- a wonderful combination. Many people that say such mean-spirited things have their own set of hang-ups not the least of which is insecurity in the presence of such an intellectual, yet feminine (ie. hot) lady! :) If more people examined their lives like Socrates said, the world might be a slightly better place.

[publicatdamagnificen]

@freespeaker69 People like "Intellectual Concepts" are a bunch of ignorant immature idiots who have the attention span of a tse tse fly, are non-thinking inbreds, who are addicted to failure and jerking-off!!

[AmericanCantabro]

Just saw stanz' reply. A derivative is an insurance contract on whatever upon two parties decide to transfer risk. Derivatives DON"T eliminate RISK. ONLY transfer it. Their 'Chain" is simply the cds being sold to someone else, just like a stock. So these cats are telling me that the further you go out on the "daisy chain", or really the most recent owner/investor is less informed than the previous is simply rediculous. the problem is that the INSURER did not pay & EVERYONE got whacked.

[huey31415]

what a trashy whore, swearing her mouth off like that

[chasinwind]

Very good explanation, thanks.

[mouljran7]

great video, simple explanation of a complex fucked up system... thank you for the effort.

[zpalmese]

im glad SOMEONE can explain what this was!!!!!!

[botchalism]

omg she swore how unprofessional!!!!

[pacom590]

Sounds like a Ponzi Scheme to me...any comments?

[AmericanCantabro]

These people have no clue.

[stanzibritovsky]

can you clarify a bit then please cuz im one of those people that dont have a clue either. i never even heard ot this word untill recently. is there something out there that explains it better?

[MarquisdeBarrabas]

Great video!