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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (14453)	2/4/2002 10:32:42 PM
From: Ilaine	Read Replies (2) \| Respond to of 74559

>>One day Dr. Partnoy overheard a conversation with a derivatives salesman taking to a customer, a treasurer of a mid-sized Midwestern insurance company, explaining the footnotes in a previously signed hedging contract and explaining to the treasurer exactly how it was that he had lost $7 MM in two days on the devaluation of the Thai baht, which wasn't a currency that the treasurer though he'd involved himself with is a yen-dollar contract. Alas, the footnote on page 17 indicated otherwise. After sympathizing with the man who was about to lose his job, and his career, he ***"wished him well". Partnoy, who'd overheard only bits and pieces of the conversation asked the trader what was up. The trader casually said, "Oh, I just ripped his face off." << Which is the way it must be, otherwise no contract can be relied on. "A deal is a deal." "Pacta sunt servanda." "A man's word is his bond." This is the sine qua non of capitalism. Until a culture can make the step to this level, it's going to remain a third world hell hole at best. The difference between this and Enron is that the truth wasn't in a footnote on Page 17. As my grandmother said, "a deal is a deal, but the deal you made is the deal you made."