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To: Daniel Chisholm who wrote (131)	9/22/1998 10:47:00 AM
From: Sun Tzu	Read Replies (1) \| Respond to of 10688

<<The banks are the interesting and scary thing, worldwide...nless you know the nature of the derivatives...Details matter!>> Indeed! I agree completely. What has been happening with the derivatives is that they have lowered the risk to each individual bank at the expense of increasing the risk to the whole system. This is something that to my surprise even some of my structured derivatives friends did not notice. This is not necessarily a bad thing. I remember once getting a stat question; assuming that airplane will not crash if half of its engines are operational, on what type of airplane do want to travel in, a two engine or a four engine. The answer depended on the failure MTTF of the engines, not just the number of them. Like you said, the details matter! Sun Tzu P.S. I bet if you look you on the net, you can find the transcript of Soros' testimony to Congress.