re: #118 Obdicut

Sure. But it rose again. They’re still overexposed. It should be declining, declining, declining, not rising. That it rose again shows that they increased exposure.

Unless you think that they’re not still overexposed?

I know just enough about derivative valuation and pricing to refuse to make sweeping statements.

Moving derivatives onto exchanges seems a good thing, as does collateralizing them. Although derivatives have legitimate uses, I am inclined to believe that there are too many floating around but unwinding the positions all at once would probably be traumatic for the financial system.

Btw: a shout-out to Brooksley Born, who foresaw the danger and tried to avert it. The Establishment squashed her efforts and has made amends to a limited degree, but not nearly enough.