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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (29568)9/17/2008 6:01:44 PM
From: DuckTapeSunroof  Read Replies (1) | Respond to of 71588
 
"I think your putting too much trust in regulatory authority."

Not at ALL!

But... TWO big problems are solved that way:

1) having a standardized product (such as with Options) REMOVES counter-party risk (because the third party stands behind all settlements...), and

2) having the product traded on TRANSPARENT open markets eliminates all problems with "price discovery" --- no longer any need to take a 'liar's assessment of value' because you have a public market price to refer to!