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

To: TimF who wrote (29736)	10/3/2008 5:12:23 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

"If you know that the person you are dealing with is a liar...." That's just it: you DON'T 'know that'. (For if you did than most likely you would not enter into any sort of financial deal with them that potentially required them to make good on their promises.) That the BEAUTY of having an ASSIGNED EXCHANGE and clear lines of authority for a regulator to oversee the parties to the trade.... That way you can enter into trades WITHOUT WORRYING ABOUT counter-party risk (whether the liars on the other side of the trade have the wherewithal to back the deal they are making or not...), because the THIRD PARTY stands behind all settlements and guarantees them! This allows the markets to GROW sustainably....