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

To: HH who wrote (11731)	9/24/2008 6:05:16 PM
From: Real Man	2 Recommendations Respond to of 71456

If these are the kinds of dudes developing these instruments, they GOT to be screwed up -g- I know a few of those, and some would seem to be sick in the head to a normal person <G> Now, B of A has a derivative group of 12 or so in Atlanta (just that? Ho!), they carry da title of "associate director", they operated in interest rates, and used to make da number when da whole bank missed it a bit. Things have been running da other way lately, I guess <G>

To: HH who wrote (11731)	9/24/2008 6:29:30 PM
From: Real Man	2 Recommendations Read Replies (3) \| Respond to of 71456

I should add, THAT Bank of America personal story dates about 7 years ago, when derivatives were about 100 Trillion notional, 10% of where they are today (we are at 1 quadrillion, or 1000 trillion), thanks to all the QUIET BAILOUTS that appeared ALWAYS near expiration - otherwise a melt would happen. Liquidity injections tend to take care of these things automatically via all this complicated quant math. I guess, this bubble lately outgrew all liquidity in the World combined. -g- In my simple understanding of this quant stuff, liquidity injections tend to reduce market volatility and stabilize the markets, then they normally like to go up as a result. On the other hand, free markets are inherently wild, so they want to do small crashes periodically, which were not allowed. As a result of such actions of small crash suppression, the markets get really pissed and then there is a big one coming. Sorta trivial explanation. Another explanation is that derivatives offload risk on the system, then it becomes systemic risk, until there is too much of it. Then eventually the system can't handle all the risk and breaks down. Quite an experiment -ng-