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To: PhilosopherStones

That’s not it. Multiply that ten fold because of derivatives.


42 posted on 09/29/2008 7:52:45 PM PDT by Porterville (Im no economist- getting a PHD in economics wasn't economical... it didn' make cents.)
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To: Porterville

Once again, derivatives have LESS risk than the original underlying debt (otherwise why would anyone buy them?).

The only problem with derivatives is that no one wants to put a value on the underlying debt. Once that happens, the derivatives will have a value, and a GREATER value than the underlying mortgages because they (by their very nature) have LESS risk.


43 posted on 09/29/2008 7:55:54 PM PDT by PhilosopherStones
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