Seven Times When Financial Derivatives Teetered the World's Economy on the Brink of Ruin

The Dotcom Bubble, 2000

The turn of the millennium saw the bursting of the dotcom bubble. During this period, derivatives such as options were widely used to speculate on the rapidly inflating prices of technology stocks. However, when the bubble burst, these derivatives amplified the impact, leading to significant losses for investors and a downturn in the global economy. This event underscored the potential for financial derivatives to fuel speculative bubbles, with disastrous results when these bubbles burst.