A Quote by Charlie Munger

Derivative trading with mark-to-market accounting degenerates into mark-to-model. Two firms make a big derivative trade and the accountants on both sides show a large profit from the same trade.

Charlie Munger

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Accountants Accounting Big Both Both Sides Degenerates Derivative Large Make Mark Market Model Profit Same Show Sides Trade Trading Two

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Charlie Munger
American - Businessman
Born: January 1, 1924

The credit derivative market would never have evolved but for the preexistence of the derivative markets because so much of the technology was borrowed.

Blythe Masters

The idea that big buyside firms are going to come in and trade mano-a-mano with high-frequency trading firms shows a lack of knowledge of the business.

Howard Lutnick

Many venture capitalists say they're looking for the next big idea. But they aren't, really; they're looking for something derivative, because derivative is safe.

Jose Ferreira

Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there. It [accounting for derivatives] is just disgusting. It is a sewer, and if I'm right, there will be hell to pay in due course. All of you will have to prepare to deal with a blow-up of derivative books.

Charlie Munger

Life can be lived at a remove. You trade in futures, and then you trade in derivatives of futures. Banks make more money trading derivatives than they do trading actual commodities.

Sebastian Faulks

We know that trade, NAFTA, the free and open trade between Canada and the U.S. creates millions of good jobs on both sides of the border.

Justin Trudeau

My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks. The emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can’t trade.

Bruce Kovner

Mark-to-market accounting is like crack. Don't do it.

Andrew Fastow

Americas largest trade deficit is with China, a nation that enjoys Permanent Normal Trade Relations with the U.S. and ties its currency to the dollar to make it a more competitive trading partner.

Jo Ann Emerson

To be secure everywhere is the mark of sophistication, to be unshakable is the mark of courage, to be permanently in love with every person is the mark of masculinity or femininity, to forgive is the mark of strength, to govern our senses and passions is the mark of freedom.

Eknath Easwaran

A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. The monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate.

Adam Smith

Too many countries that do not play by the free trade rules of the World Trade Organization - including, notably mercantilist China and monopolist Saudi Arabia - have been allowed in, to the detriment of both the WTO and the liberal trading environment it is supposed to sponsor.

Frank Gaffney

Every quarter, we need to see the portfolio and follow the accounting practice of mark-to-market that values investments according to the prevailing market prices and at the price at which they are made.

Chanda Kochhar

If you trade with someone and they are your biggest trading partner, it is impossible you don't have trade issues.

Subrahmanyam Jaishankar

I think the free market model of commercial trade openness - this model has undoubtedly shown enormous benefits for nations, for those of us that follow this model, of course.

Enrique Pena Nieto

Cynicism ... is the trade-mark of failure.

Katherine Cecil Thurston

A Quote by Charlie Munger

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