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Article on new derivative Citi wants to offer

To simplify this: it's bad. As I understand it, the only way for this thing to perform well would be for some entity to suffer great losses in the financial markets. Then, someone has to fork over cash equivalent to those loses. No one seems to know who pays for it, but someone has to get paid. When the financial markets suffer great losses, and institutional investors are owed large sums of money, guess who they'll look to to pay for it? I'll give you one guess.
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quote:
Originally posted by dolemitejb:
Article on new derivative Citi wants to offer

To simplify this: it's bad. As I understand it, the only way for this thing to perform well would be for some entity to suffer great losses in the financial markets. Then, someone has to fork over cash equivalent to those loses. No one seems to know who pays for it, but someone has to get paid. When the financial markets suffer great losses, and institutional investors are owed large sums of money, guess who they'll look to to pay for it? I'll give you one guess.


Wow, reading that makes my head hurt...but it doesn't sound good.
quote:
The Feds wasted no time on Madoff, why did all the banks and stock morons get off with a "raise"?


The Feds, specifically the SEC, spent no time on Madoff. They were notified by outside sources that he was up to no good, but chose not to pursue him. Once his operation self-destructed, he became an easy target for the government to pretend they were closely monitoring the financial sector.

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