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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Richard L. Williams who wrote (956)10/1/1999 9:22:00 AM
From: Worswick  Read Replies (1) of 2794
 
Hello sorry not to reply but I have been away.

Ref yours: "....Have derivs gone away, or are they still there, lurking and bubbling under the surface?"

IMHO they are still out there... trillions of dollars ticking away ready to detonate. Witness gold this last week. All the syncretic products of the gold world... all the "puts" are being slammed back to the guys who wrote them up, the banks and "strategic investors" who put them up on the books of the various banks and hedge funds who believed that gold was in a perpetual bear market.

So you get this huge move up in gold as all the "shorts" cover their positions. But what about the derivative products centered on gold?

We shall see.

Best to you,

Clark
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