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To: Moominoid who wrote (123166)	8/21/2005 7:56:38 PM
From: skinowski	Respond to of 209892

Thanks for the article... I don't think there is all that much mystery as far as $VIX is concerned. We have a trillion+ USD's in thousands of hedge funds, which is a recent phenomenon. Many of them are trying to make money selling options. The rest is a supply:demand issue... too many willing sellers will drive prices down. I thought this way for some time, and recently Bernie Schaeffer also wrote along these lines. In a certain sense, presently, the low $VIX may be more of a reflection of the exuberance and complacency on the part of the hedge funds and other premium sellers, than anything else. Either way you slice it, eventually it will play out as a negative for the markets.