i was thinking, everyone knows he magic of compounding interest rates.
Now that that's behind us, we don't even have a word for 'the magic of.. what is the opposite of compounding?
We turn to etymonline for wisdom:
compound (v.)"to put together," late 14c., compounen "to mix, combine," from Old French compondre, componre "arrange, direct," from Latin componere "to put together" (see
composite). The -d appeared 1500s in English on model of expound, etc. Related: Compounded; compounding.
decomposition (n.)1762, from
de- + composition. An earlier word in the same form meant "further compounding of already composite things" (1650s).
composite (adj.)c. 1400, from Old French composite, from Latin compositus "placed together," past participle of componere "to put together, to collect a whole from several parts," from com- "together" (see com-) + ponere "to place" (past participle positus; see
position (n.)). The noun is attested from c. 1400. Composite number is from 1730s.
com-word-forming element usually meaning "with, together," from Latin com, archaic form of classical Latin cum "together, together with, in combination," from PIE *kom- "beside, near, by, with" (compare Old English ge-, German ge-). The prefix in Latin sometimes was used as an intensive.
Before vowels and aspirates, reduced to co-; before -g-, assimilated to cog- or con-; before -l-, assimilated to col-; before -r-, assimilated to cor-; before -c-, -d-, -j-, -n-, -q-, -s-, -t-, -v- assimilated to con-.
expound (v.)c. 1300, from Old French espondre "expound (on), set forth, explain," from Latin exponere "put forth, expose, exhibit; set on shore, disembark; offer, leave exposed, reveal, publish," from ex- "forth" (see
ex-) + ponere "to put, place" (see
position (n.)); with intrusive -d developing in French (compare
sound (n.1)); the usual Middle English form was expoune. Related: Expounded; expounding.
'In Englissh,' quod Pacience, 'it is wel hard, wel to expounen, ac somdeel I shal seyen it, by so thow understonde.' ["Piers Plowman," late 14c.]
So, what we have now, is
the magic of expounding interest rates"How painful? Here is the breakdown. As Goldman calculated one month ago, a 100bp shock to interest rates would translate into a $1trn market value loss. That is using the more conservative estimate of the bond market. Using the broader bond market sizing of $40trn, the market value loss estimate would be
$2.4 trillion."
source:
http://www.zerohedge.com/news/2016-07-10/over-13-trillion-negative-yielding-debt-pain-1-spike-rates-would-inflict
