This afternoon ~4:15pm we will be discussing the EuroZone, Derivatives and Swaps.
• Swaps and Derivatives serve a purpose, but thanks to CFMA legislation, they were radically deregulated.
• These look like Insurance products, only they lack the infrastructure. No oversight, little in way of guarantees or reserves.
• There is an ongoing counter-party risk. Its a zero sum game with specific winners and losers, and if you win too big, there may be no money from the loser to pay you.
More to come later.