Your observation is very accurate,...
In August of 1998, the Overall Market System almost crashed because the cross-stitching of options where not properly calibrated,... The Fed,... got them out of that problem,... and I was one, that thought it could not be done for it would require the cooperation from the 15-20 major US firms,...
Same problem in February of 2003,... improper calibration of options,... however, at that time,... additional Hedge Funds where brought in to balance the diversification of the option Market,....
Moving forward,... the markets will be exposed to a new type of cross-stitching of options, in and around the year mid-2006,... Im not sure what type of game will be afoot, at that time,... but I got my FIZZ in the BIZZ
Meaning, it will seems more volatile, but in reality, it will be more balanced,....
One thing I can say for Americans,... is when the heat is on,... they rally around in a group and FIX a major problem when it becomes EXTREME,... |
