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To: Box-By-The-Riviera™ who wrote (92101)4/10/2001 4:35:00 PM
From: pater tenebrarum  Respond to of 436258
 
the crucial point here is that all the netting out in the world doesn't reduce systemic risk one iota. in fact, the increasing concentration in FNM's counterparties has heightened the systemic risk.
note that SOMEBODY is always holding the bag in a derivative transaction...although it's a zero sum game in the end, the counterparty risk can not be eliminated.