The Motley Fool Discussion Boards
Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: Derivatives rules -- loose as usual||Date: 5/16/2013 6:32 PM|
|Author: RaptorD2||Number: 423051 of 510739|
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.
The entire practice of lobbying is arcane and evil.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|