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To: orkrious who wrote (166708)	5/19/2002 6:08:12 PM
From: Tom Smith	Read Replies (1) \| Respond to of 436258

tulving.com

To: orkrious who wrote (166708)	5/19/2002 6:30:18 PM
From: maceng2	Read Replies (1) \| Respond to of 436258

The financial system is highly geared. This is our Achilles' heel. All of these events have enormous implications for the interest rate markets and interest rate swaps, which have been based on certain linear assumptions. The problem is we live in a nonlinear world. What we simply do not know at the moment is how a highly leveraged market will react to a prolonged bear market in paper assets. To better understand this risk, it is necessary to return to the topic of derivatives. Man, that guy knows how to use scarey words!!