[FoRK] August 2007 Update of The Second Great Depression
Adam L Beberg
<beberg at mithral.com> on
Wed Aug 1 21:24:42 PDT 2007
Lion Kimbro wrote on 8/1/2007 7:01 PM:
> * Is it possible that the leverage is so high, because expected
> changes are so small?
But 1% currency moves in a day or two are common now. But yes, in theory
that's the idea. Lookup the Yen Carry Trade. If the Yen rises 5% some
unfortunate day, or the dollar falls, the US markets go poof. It's
happening, just in slow motion. Housing is crashing in slow motion too.
> I don't know what that means, "client absorbs all risks
> associated," but I wonder if that means you have to have some
> extra cash on hand available, beyond just the leveraged cash,
> or if they're going to eat you out with a spoon if you lose, or *what.*
Same thing that happens when you lose to a bookie. But they wear suits.
Adam L. Beberg
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