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To: Stock Farmer who wrote (2326)	3/11/2001 2:51:11 AM
From: TobagoJack	Respond to of 74559

Saw this by you ... well put Message 15482271 <<Impressive how quickly one can go from zooming in the fast lane in leather seats with CD booming quad stereo at one minute to being pinned upside down within crumpled metal the next...Many of my friends have jobs as crash-test dummies (work in tech, paid in tech stock options).>> I got a bunch of friends in the financial industry, still zooming in the fast lane, but knowing that a crash is coming. The brakes are not working, and so they drive on... whispering about the coming depression, while at the same time going shopping for condos in Hawaii. They figure that if they talk about it, it will not happen, not knowing the ... The Unspeakable Law "As soon as you mention something; if it is good, it goes away. If it is bad, it happens." and of course ... The Inapplicable Law "Washing your car to make it rain doesn't work." I think these discussion threads are great in that it acts as a brake on our impulsive actions, and a reminder on our own respective past foolishness. The quips came courtesy of a rediscovered old computer file, collected same way the watches are collected, one at a time. I am cutting and pasting as I go, and so no quip will be repeated. I am about 50% done. Liked the bit about 1.5G telephone. You are right, getting a cellular phone call while in the toilet stall at the Mandarin Oriental Hotel can be disconcerting. Chugs, Jay

To: Stock Farmer who wrote (2326)	3/12/2001 12:22:04 PM
From: SouthFloridaGuy	Respond to of 74559

Tick, tock, tick, tock... Clementi warns on derivatives By Aline van Duyn Published: March 12 2001 00:47GMT \| Last Updated: March 12 2001 00:47GMT The growing use of credit derivatives by banks to reduce their risk of exposure to defaults by companies could jeopardise the stability of financial markets, according to the Bank of England. David Clementi, deputy governor at the Bank of England, said on Friday he was concerned about the lack of transparency in credit derivatives, making it difficult for bank creditors, shareholders and regulators to assess the risks of exposure to particular companies or sectors. He also said there were legal uncertainties in the use of credit derivative contracts and documentation in the market had to improve to keep pace with the growing levels of transactions. "In a wider sense, the development of these markets for the transfer of credit risk is highly desirable," Mr Clementi said in a speech delivered in Rome. "Unfortunately, however, where there is innovation, there are generally concerns . . . From the point of view of financial stability, the concern is that these instruments might equally be used to concentrate risk as to disperse it." The credit derivatives market has grown rapidly. A survey by the British Bankers' Association in July of last year estimated the market had grown more than three times since 1997 to outstandings of about $600bn. Mr Clementi said market participants' estimates go up to a $1,000bn. Banks or investors can buy the contracts from another party. In the event of a default by the company, the contract will pay compensation. This should allow banks to reduce the risks of default, without actually removing the assets from their balance sheets. The uncertainties in the market were highlighted last week after UBS filed a suit in the UK against Deutsche Bank for more than $10m over a credit derivative related to Armstrong World Industries, a US building materials company. Mr Clementi said that, if they work well, credit derivatives can enhance financial stability, but authorities had to work with the market to make sure this was achieved.