Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (976)	10/26/1999 2:26:00 PM
From: Merritt	Read Replies (2) \| Respond to of 2794

Henry: <<AG didn't bail out LTCM, the banks did.>> I suppose that's technically correct, but I do believe AG was manipulator and provider of the energy (liquidity) while the banks served as the tool. <<Derivatives, in my opinion, were incidental. It was essentially a leverage problem.>> It could be said that the derivatives provided the vehicle for the leverage exposure, IMHO. My feelings re derivatives are still nebulous...I can see the benefits, but there's always someone on the other side who's experiencing the reverse - and, because of the leverage possible and the size of the market, that could cause some huge problems in the event of defaults.