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: Hal Ford who wrote (1010)	4/21/2000 2:22:00 PM
From: Worswick	Read Replies (1) \| Respond to of 2794

Hello... and I do hope they can continue to roll the rocks off the road. Ref. The Prudent Bear 216.46.231.211 ". It continues to be our view that the unfolding dislocation in the derivatives marketplace, the linchpin for the money and credit bubble, is a similarly seminal development. Yet, we would be very surprised this weekend if any of the commentators ?connect the dots? between the dislocation in the credit market and troubled stock market. It was, however, the dramatic widening of spreads that signaled faltering liquidity and a changing landscape for the highly leveraged credit system and acutely vulnerable financial system. Here we clearly see derivative problems as the catalyst for the piercing of the US bubble, as it has precipitated losses for the leveraged speculating community and forced the unwind of leveraged bets throughout the credit market and, increasingly, the stock market." All on my own.... it has been my view for sometime that the "Herstatt Effect" will once again come into play: that is, one of the legs of the stool will give out... and counter-party obligations, upon which most derivative structuring is based (at least in my belief) will collapse. Then, in exactly about three minutes the largest credit bubble in the whole history of the world will burst. The cheery side is that you will be able to buy a modest 10,000 square foot house in Greenwich for about $1.25. But then that is just my cheery opinion. Best to you all, Clark