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To: stan_hughes who wrote (363289)	3/23/2008 10:40:43 AM
From: Real Man	Read Replies (1) \| Respond to of 436258

I doubt it. This market has been controlled through derivatives, and we are witnessing a breakdown of control mechanism, and a fight to preserve that mechanism? It is VERY hard to be optimistic about it, but here is a "glass half full" thought. The most of OTC derivatives are done between banks and other financial institutions, according to BIS. Thus, these huge positions must make roughly 1/2 of financial system insolvent. Open interest in OTC can be reduced through takeovers of losers by the winners, which is what we have been witnessing lately. The role of the Fed, etc. must be to regulate these explosive things, and try to encourage gradual decrease of the open interest. In other words, maybe they can make something not so drastic in these markets through consolidation of financial industry.