Derivatives differ from assets in being zero-sum trades for the parties

Evidence

11. Assets are tied to the economy and can be a win-win thing for both buyer and seller. Derivatives are a zero-sum game in which only the bank makes money on both sides of the trade since one person’s payout is another’s loss. — Mark Blyth, Austerity, 705

Categorization

• DEFINE: Succinctly defines the distinction between economy-tied assets and zero-sum derivatives, identifying the bank as the only consistent winner.
• XREF: connects to: A derivative is a time-bounded bet, not a property claim — Mark Blyth, Austerity: The History of a Dangerous…, 87; Derivatives are speculative techniques betting on future asset-price movements — Max Haiven, Cultures of Financialization, 153; Swap credit risk covers only net interest differences because principal is notional — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 984

Broader Connections

• A derivative is a time-bounded bet, not a property claim #expands (0.88) — Mark Blyth, Austerity, 87
• Derivatives are speculative techniques betting on future asset-price movements #expands (0.80) — Max Haiven, Cultures of Financialization, 153