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To: jessduntno

To know whether it’s “a lot” we’d have to know what the net is.

E.g., if I bet $4.99 that the 49ers will win and then, to hedge that, bet $5.01 that the 49ers will lose, the “total” bet is $10, but the “net” (potential loss) is $.02. This is what derivatives are “supposed” to do (hedge other bets). Unfortunately, many derivatives aren’t structured in this “win-lose” fashion, but can end up “lose-lose”.

Of course the main point of the article that connected bankers use corrupt politicians to cover their behinds is still valid.


19 posted on 10/24/2011 8:36:41 AM PDT by PhilosopherStone1000
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To: PhilosopherStone1000
Don't worry. I'm sure the republican politicians will protect us from this.


24 posted on 10/24/2011 8:45:13 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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