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Old 01-28-2009, 11:34 AM  
spunkmaster
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Join Date: Jan 2004
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I read the entire Gov't report and it says that derivatives are less risky then loans and pose less risk to the Banks ?

I looks like a never ending hedge against losses that gets sold over and over again so that $1 ends up with $10 in insurance to cover any losses ?

I still don't get how much exposure the Banks actually have ?

Is their exposure on the $1 or the $10 ?
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