Subject: Re: Derivatives the "secret sauce"?
Steve wrote, "Of course they count "securitization" in GDP."

No, Steve, that's not true.

GDP (Gross Domestic Product) measures the total market value of all final goods and services produced within a country's borders in a specific time period. The key components of GDP are consumer spending, business investment, government spending, and net exports (exports minus imports).

The original loan is counted in GDP as a financial service provided by a bank. But any securitization or derivatives on that loan would be double-counting so they are not part of GDP.

Wendy