Rich Happy Girl Pic

Danger of Derivatives

Libya - Almost 1.2 billion dollars in investments gone through Goldman Sachs

Libya - Almost 1.2 billion dollars in investments gone through Goldman Sachs

Libya had a 1.2 billion dollar investment portfolio nestled with Goldman Sachs. Within a few short years, it lost more than 98% of its value. One day 1.2 billion dollars, the next year or so, a few million.

Now, Goldman claims Libya selected their own investments in derivatives. Thus, the entire blame was on Libya. Libya might disagree, except for the fact that it has been busily preoccupied with war.

This DOES beg the question… did Libya ever ask their Goldman management team (advisors) the following — “Do you have any recommendations? What are your thoughts on our investment choices? Do you have any input?”

This seemed a dangerous risk…

Quote:

“…the real problem is that there was no basis of comparison for the prices of the derivatives products they were being given.

And that’s where there’s a lesson to be learned. As a retail investor, you have to be able to determine a two-way price quote for whatever investment you buy.”

http://moneymorning.com/2011/09/07/dont-get-duped-by-derivatives/

INVESTMENTS, MAKING MONEY, POSTS. | Bookmark | Comments RSS | Comments are closed, but you can leave a trackback: Trackback.


~~~

Love is a many splendored thing. (If you play your cards right.)

~~~



~~~