It’s easy for politicians and their media hangers-on to quote analyst emails out of context about derivatives, while losing sight of the fundamentals of the subject. How many legislators and media folk would want their off-hand comments published the same way as if each were written in stone or as gospel?
The fact is, many investors seek risk, the riskier the better. They weigh that risk against the added return they get from the risk. Sometimes the added return comes from short selling, or betting prices will fall.
In every transaction there is a buyer who wants in and a seller who wants out. Especially when sophisticated buyers and sellers are available, as in derivatives, why is the government the arbiter of risk?
As far as the non-sophisticated are concerned, the media’s job is to explain the basics, so the masses keep away from what they are not familiar. (See the Earl J Weinreb NewsHole® comments.)
No comments:
Post a Comment