Oh, I definitely wasn't passing judgment on financial firms. By "problems", I meant reducing transaction costs by bundling and/or securitizing. I was more refe

Oh, I definitely wasn't passing judgment on financial firms. By "problems", I meant reducing transaction costs by bundling and/or securitizing. I was more referring to the general problem being that capital markets are not perfect (in the economic sense). The real question is how one would actually perform a hedge in a gambling market. I guess, what it comes down to, is 1) are there hedging opportunities and 2) if not, why not?