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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (4952)	4/1/2009 10:12:38 AM
From: Jim Mullens	Read Replies (1) \| Respond to of 9129

C2, Re: Black Swans, etc>>> "they have set feeding trays loaded with juicy morsels on which black swans might feed." Does that include Bear Raiders? Could they perhaps be working both sides of the trade? Still wonder who's profiting in these massive losses (follow the money) ???

To: carranza2 who wrote (4952)	4/1/2009 2:52:09 PM
From: Eric Martin	1 Recommendation Respond to of 9129

The derivatives exposure cited in the graph is almost certainly the total notional or face amount of the derivatives on both the long and the short side. Essentially all of the transactions are hedged. The risk comes from the first derivative of the hedge. (no pun intended) If a market moves more than a certain amount, the hedging ratios change in a non-linear way. This requires re-hedging or balancing. The rapid moves in the past six months have made this process very difficult even for a risk management staff as skilled as Goldman's.