Letters to the Editor
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Derivatives are good
Greenspan has said repeatedly that derivatives spread risk and therefore are a good thing. Part of his reasoning is that one hand washes the other, that a low probability event in one nations economic system would be counterbalanced by the other healthy world economies. If you care to look at the charts of the Merva in Argentina, you must agree with that assessment. For further consideration there is the LTCM debacle, which should have been a lot worse. What reason is there to suspect that counterbalanced risks don't outweigh the outcome of a Black Swan event, even in the world's leading economy?
So far the Emerging Market indexes are doing just fine, economic decoupling has placed firewalls between the rest of the world and the contagion on Wall Street. No reason to suspect the worst is yet to come. BSC stock is up 200% from the prospective deal price.
If you think sentiment is negative, guess again.