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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: lorrie coey who wrote (73951)	1/18/2000 4:08:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 132070

well, the Black Gold certainly has performed well lately. you're right about the role of derivatives in practically all markets...imo it has gotten out of hand. a giant house of cards. take for instance the enormous balance sheet expansion of Freddie Mac and Fannie Mae. they hedge their interest rate risk. their counterparties by now sit on an estimated 30 billion dollars in derivatives losses. but since they're all off balance sheet, and not marked-to-market anyway, nobody has officially been notified of this fact as of yet. :)