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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: bcrafty who wrote (84249)	3/5/2004 8:27:19 AM
From: Louis V. Lambrecht	Respond to of 100058

bcrafty - yet another trading bet reserved to "accredited" investors and/or commercial houses. Not uncommon that a widely watched number as the payrolls would have a derivative on it. Among other odd derivatives, the plan of the DoD to trade a "terrorist" futures. (Which has been canceled in the very week of its presentation). Other issue not to forget is that large commercial houses can insure themselves from market losses, putting the risk to a further degree at insurances. Now, as these derivatives and insurances can be commoditized, you there would have derivatives at a the third degree and this is only the start of it. Don't forget either that all those positions are hedged intermarket. That is what Warren Buffet was taking about when talking about sewage. One small disruption of one actor can initiate a chain reaction of which the outcome cannot be evaluated. FWIW, small ivestors can bet on anything they want through London bookies.