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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (5887)	4/5/2008 10:13:39 AM
From: Real Man	Read Replies (2) \| Respond to of 71401

Exactly. It seems to me that it's nearly impossible to deflate derivatives without a thermonuclear explosion. Options of various types do expire, though, and then there is less need to hedge them with futures, forwards, and whatever else. Say, you have AAA bond, that is really a B, insured by some contract. Protection becomes too expensive, and expires. AAA becomes B. Not the real world, but close enough, I guess, to what happened to all these weird credit derivatives and sliced and diced packaged debt.