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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (62890)	4/22/2009 11:16:27 AM
From: SGJ	Read Replies (1) \| Respond to of 224706

What - you think we need a few more trillion derivatives to try to unwind? Derivative amounts are easily misunderstood. The majority of people are clueless. First you have these large notional amounts ( 400 trillion dollars!!) which are just offset between counter parties. Then you have the derivative itself, whose failure, (i.e. a counter party failure), in the off chance it may occur, may not affect the underlying asset at all. Then you have that most are interest rate swaps, which leave the in-the- money counter party at risk for only the amount owed over the term from the last payment received. Don't let the know nothings in the media scare you. Knowledge is power. You can make a lot of money knowing stuff.