From Daily Reckoning
By Eric J Fry
"They look, smell and taste just like regular securities, but almost no one understands why we need them in the first place. After all, what's wrong with actual meat? Or to re-phrase the question: Is Spam really an advancement over ham?
More importantly, can we trust the derivatives markets? Or might they be toxic? Might they subject the financial markets to devastating side effects?
No one really knows...and since lab rats refuse to eat them, we must assess the risks of derivatives by relying on suppositions, theories and conjecture. Therefore, as a public service, your California editor will offer a few suppositions, theories and conjectures about the rapidly expanding derivatives markets."
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