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

To: Broken_Clock who wrote (33114)	9/30/1998 5:49:00 PM
From: Knighty Tin	Respond to of 132070

PK, Though I disagree with nothing in the report, derivatives are hardly the only problem that grows when economies hit the skids. As I've stated many times, derivative losses are a real domino theory in action and I think the other Greenspan, the one with the briefcase, was scared enough to lower US rates when the last thing this overheated, incredibly unbalanced economy needed was more stimulation. But, what is true of derivatives is also true of straight loans. Chaste loans money in Asia and the borrowers suck wind, they don't get paid. In that case, derivatives may actually be a bit more liquid than loans. Bankers Trust put out a report today about their loans to hedge funds that made me laugh. They were all hedged with cash. Huh! If you have cash, what's the point of borrowing money and paying interest. That was a truly stupid attempt to make everyone believe something that is not and cannot be true. The entire point behind a hedge fund is maximizing the returns. You don't do this by depositing a million bucks and then borrowing it back. Dumb! MB