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Uncertainty has a cost which exists no matter where you move it around. Yes, investment banks might sell you some kind of exotic derivative which moves the risk
by Analemma_ 10mo ago
Uncertainty has a cost which exists no matter where you move it around. Yes, investment banks might sell you some kind of exotic derivative which moves the risk onto them, but they'll charge a risk premium for this (probably a very high one since the risk factors here are pretty unusual and hard to model), and that makes it harder to stay afloat as a business. There is no handwaving away the damage that uncertainty does to commerce.