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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: GuyNixon who wrote (32783)	9/24/1998 6:32:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Guy, the point is, the banks and brokers are not the ones short our put options. It is us and other individuals and well-margined institutions. The brokerage system can take a big hit, but if you are short puts, somebody is going to make you make good on them, if not a brokerage house, then Bill Seidman with his future job assignment. -g-It is the same thing that happens when a bank goes under and you owe on a loan. You still pay. The derivatives these guys talk about are highly margined, unlisted, unregulated, mostly debt guarantee contracts between big financial players. They are not the options we use. We can't play their game. They don't play our game BECAUSE they can't do it with enough margin. And our game has position limits that are very restrictive. Don't know COF. MB