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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (14833)	8/30/2000 12:02:13 PM
From: Lucretius	Respond to of 436258

ho ho ho

To: pater tenebrarum who wrote (14833)	8/30/2000 1:09:53 PM
From: re3	Read Replies (1) \| Respond to of 436258

non-issues. jpm hit another 52 week high.

To: pater tenebrarum who wrote (14833)	8/30/2000 1:11:56 PM
From: chic_hearne	Read Replies (2) \| Respond to of 436258

heinz, Kind of a dumb question. What all does "total derivative" include? thanks, chic

To: pater tenebrarum who wrote (14833)	8/30/2000 1:20:48 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

Heinz, as I've mentioned before: Graph number one is illuminating in showing the rise in notional derivatives. 1990 = $6 trillion 2000 = $37 trillion Notional value WAY over states the risk, if you're long a trillion tbills what's the risk? Counterparty. Note the 'bilateral netting' agreements as well, no messy lawsuits over one contract, total gets netted so banks can more easily estimate each counterparty risk. Still, as you have said.. the system has never been tested. Any 'freeze of assets' by a government [which in a major default where any authority steps in is certainly possible] could cause a chain reaction of derivative contract technical default, and scare the crap out of people. DAK