Idle Speculation... Counterparties, Derivatives, and Hedging.
http://americansolareconomy.blogspot.com/2009/05/idle-speculation-counterparties.html
I wrote this up tonight. Let me know if you see logical errors.
As an afterthought, notice that the market, having been driven UP UP and UP some more, is now crashing strongly into May Options Expiration. Lots of suckers bought Calls that aren't going to pay off, and the Banks and Hedgies are going to divide that money amongst themselves in the form of hedges to the nth degree. Right or wrong?
I wrote this up tonight. Let me know if you see logical errors.
As an afterthought, notice that the market, having been driven UP UP and UP some more, is now crashing strongly into May Options Expiration. Lots of suckers bought Calls that aren't going to pay off, and the Banks and Hedgies are going to divide that money amongst themselves in the form of hedges to the nth degree. Right or wrong?