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Sure and we don't really know the facts of the case, really... We just see one side of the story. All I am saying is that it's weird. This Oei guy was a private client who was obviously valuable enough for Goldman to wheel out the really big guns. Normally, these types of clients, the bank...

Nah, I am saying that Cohn should fire all the sales people involved and probably a few people on the desk who priced it. They made the Don look bad to a client to whose house he went for dinner and, I imagine, a bunch of other wealthy dudes over there. Think of this (and read the actual...

Bankers and investment banks suffer the most from deflation? How does that work exactly, achilles? As to the falling prices, it's only a benefit if your wages don't fall or fall slower than prices, innit? What if your wages actually fall faster, is it still a benefit?

If you read the actual complaint, there are some very questionable things that Goldies allegedly did. Personally, if things happened the way it's described in the complaint and I were Gary Cohn, I would fire everyone involved in this trade on the spot.

I am curious, zd... Have you done this yourself? Do you have any numbers?

This: "Physically settled is way way superior and should be the way its done."

Ain't no problem, sire... You're absolutely entitled to your opinion, which certainly appears to be a carefully considered one. I respectfully disagree. Good luck!

Yeah, sure, I see what you're saying... However, don't you think it's every individual's choice how to participate in the mkt? If someone wants to punt the underlying w/o understanding and appreciating what they're actually trading, it's their prerogative. Moreover, a lot of the hardcore TA...

The same thing that secures futures secures swaps. Specifically, margin posted by mkt participants, as well as the entire capital structure of the clearing houses. So no, it ain't the taxpayer. Like I said before, when Lehman went down, LCH had to process a default of a $9trn notional...

Have you gone to the CME site and looked at the contract specs? The contracts settle to the same index value, but the settlement is done in the appropriate ccy. So if you bot either of the contracts at 16000 and it settled at 15000, you would lose in both cases. If you bot the Yen contract...

The return isn't the only thing that changes... The volatility of your leveraged asset also does. I would highly recommend the papers by GMO's James Montier, such as the "Seven Immutable Laws of Investing" and others. They're really very good and you can find them out there easily.

Precisely. It's an imaginary future loan (or a "notional" one, to use your term) that never actually gets consummated. Instead, when the time comes (i.e. either the contract matures or you unwind your position), you and the exchange agree to tear up your contract for a fee. Once you frame...

Think about it this way (somewhat simplified)... You and I get together and we agree that you will lend to me and I will borrow from you a sum of $1mil for 3 months at a rate of 0.25% per annum. The loan will be finalized and signed on the 17th of March 2014 with the money to be delivered on...

Yes, but if you think about it, you will conclude that the above is, in fact, equivalent to agreeing to make a notional 3m loan at a future date at a particular price. [B] Well, that's exactly the discussion that's occurring now and which makes these things so interesting. As to the...

Damn, man, this is uncanny timing...

Apart from the official unemployment rate (U-3), BLS also releases several other statistics related to employment (e.g. U-1 to U-6 unemployment rates, civilian labor force participation rate, etc). The easiest thing to do is to go to their website and read about how these numbers are defined...

Well, why don't you think of it this way? You're agreeing to lend notionally at some future point in time at a rate implied by the price you pay. This way, you're lending notionally, but it also happens to be a bet on what will happen in the future. Makes sense? [B] No, this doesn't always...

Strategies of this rough type are occasionally viable, but in order to figure out what exactly the strategy is, what the constraints are, etc etc, you need to do serious amounts of work. Moreover, have you considered the possibility that, even once vol comes down after the spike, you won't be...

It's OK, there's no need to discuss this further...

When I said "you're unwilling to engage in conversation" I was specifically referring to questions I asked. I don't recall an instance of me refusing to answer a specific question of yours (the one you asked above was rhetorical, so I assume you don't need me to answer it). And, like I have...