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To: SouthFloridaGuy who wrote (2253)3/5/2001 9:10:45 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 74559
 
The concern with derivatives is the outlier events. The hundred-year storms that actually happen every eight years, and result in fatter-than-expected tails on a chart of deviations. That, combined with the inconvenient reality that markets in a panic can become illiquid, thus obstructing the hedging schemes that work so well on paper as conceived by the ovocephaloids.