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What about other derivative financial "instruments"? There has been a lot of talk about the shadow banking system and their ability to avoid regulation. Won't
by kqr2 18y ago
What about other derivative financial "instruments"? There has been a lot of talk about the shadow banking system and their ability to avoid regulation. Won't these players just step in and sell these "hedges" privately and probably further exacerbate the problem?
http://en.wikipedia.org/wiki/Shadow_banking_system http://en.wikipedia.org/wiki/Shadow_banking_system
- furiouslol 18y agoOne alternative to short selling as a hedge is a structured note linked to inverse performance of a stock. But how scalable is this option? If anything, we are moving backwards with this solution as there would be less transparency in this "unregulated market". Who knows what kind of risk these counterparties will take?