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Options, futures and forward contracts are aggressive, speculative instruments that can earn large profits — or suddenly become worthless.
Bourland stated he does not see much Saudi money involved in hedge funds or other speculative instruments allegedly running up crude prices.
His speculative and theoretical works include Science and Poetry (1926; revised as Poetries and Sciences, 1970), Mencius on the Mind (1932), Coleridge on Imagination (1934), The Philosophy of Rhetoric (1936), Speculative Instruments (1955), Beyond (1974), Poetries (1974), and Complementarities (1976).
The other possibility is that the bubble is not in speculative instruments but in the tech sector: That all those going businesses with real customers are overvalued.
Artist Dora Budor, for instance, created a sculptural installation based on a series of "speculative instruments for performing gynecological experiments on mutant women," featured in David Cronenberg's film Dead Ringers (1988).
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But in the wake of JPMorgan Chase's stunning trading loss, now reportedly at $3 billion and counting, committee members need to push the regulators testifying — and each other — to explain why, four years after the financial meltdown, speculative trading in these risky instruments has not been reined in.
The Obama administration and Congress have vowed to regulate derivatives, the complex and often highly speculative financial instruments that were at the heart of the meltdown.
What does matter is not what investors know but what they cannot know yet: whether problems in the housing market will spread through the economy via collapsing prices of speculative debt instruments, Mr. Yardeni said.
The cost of certain speculative financial instruments for businesses might be higher because there would no longer be the guarantee of a taxpayer bailout of the bank if things went wrong, but the cost increase would simply mean risk was being correctly priced.
There are also claims floating about that with the decline in price, Bitcoin may be transitioning from a speculative gambling instrument to a more stable currency.
Our current tax policies favor speculative investment in financial instruments over productive investments in human capabilities.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com