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Subject:  Re: Derivatives rules -- loose as usual Date:  5/16/2013  6:32 PM
Author:  RaptorD2 Number:  423051 of 536725

And the big argument for derivatives is hedging risk. I'd like someone to explain to me how this lowers the risk to the entire system when 5 banks are buying and selling derivatives to each other.

It's like playing poker with 4 of your buds and saying that we can't lose because someone has to win. That doesn't help the guy who happens to lose and can't pay his mortgage next month, nor does it explain it to his wife. :) It won't help with the other wives either when they find out that one of the guys who occasionally loses is their spouse. Game over.

Talk about a house of cards. Oh well, it's not like the mortgage is up for grabs, just the US economy.


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