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To: Bill F. who wrote (26592)	3/20/1999 7:07:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 86076

I hope we can keep slamming the door <g> Solid column Friday night. The part that stands out in my memory this morning is the Greenspan derivatives comments that SI folks didn't say too much about. I concur with what you said. It seemed to me that Greenspan's comments got very close to even being logically incorrect. Derivatives transfer risk in a zero-sum-game way and don't create wealth. Perhaps it is semantics on my part...Yes they may play a role in wealth creation as perhaps real business ventures would not take place if the reallocation of risk didn't take place. But wealth creation per se doesn't happen with derivatives, imo.

To: Bill F. who wrote (26592)	3/20/1999 11:30:00 AM
From: accountclosed	Respond to of 86076

I see AG did acknowledge the zero sum game: "Overall, derivatives are mainly a zero sum game: one counterparty's market loss is the other counterparty's market gain," he said. So his comment about playing a role in wealth creation was part of an overall more carefully crafted statement. and this: "The possibility of increased systemic risk does appear to be an issue that requires fuller understanding," he said What did you say the other day? "master of the obvious" <g> cbs.marketwatch.com