OTC energy derivatives did not cause the crisis
Post-crisis focus must be on solutions, not on apportioning guilt
The 2008 financial crisis had many causes: herding behaviour, a culture of runaway debt, terrible risk management, second-class regulation and the search for ever-greater returns by foolish investors, to name but a few. But in the popular narrative, much of the blame will always be attributed – rightly or wrongly – to over-the-counter derivatives.
Even the fiercest critics of derivatives recognise they have some social value. After all, farmers have been hedging their production with
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