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To: grey_whiskers
"That's only true if the losing party has the cash to make the first party whole."

No, it's always true.

Derivatives can only move money between two parties. That's at most. Most times, no money will even move.

But no money is created or destroyed by derivatives.

Derivatives are economically neutral.

Derivatives are zero sum.

People who claim that financially neutral tools can destroy an economy do not understand basic economics.

Moving money, or not, between any two individuals creates no new wealth in the broader economy...and destroys no existing wealth, overall.

Thus, derivatives can neither boom nor bust an economy.

They are neutral.

32 posted on 03/05/2009 7:56:37 AM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
????

IF party A is counting on party B to reimburse them for losses, and party B says, "I don't have the money to do this" I would think party A is up the creek.

Cheers!

33 posted on 03/06/2009 4:29:23 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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