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What happened to Niederhofer? Missed the mail, thanks, Ira.
TOM142@xxxxxxx wrote:
> Scot,
>
> You are basically right, the only problem is if you trade synthetic
> derivatives, instruments they made up themselves, there is no stop and quite
> probably no exit as there is no liquidity and just nobody to take the other
> side. I think, this was their main problem, they created such complicated
> investments which such incredible leverage that nobody else understood what
> they were doing. And if you have no controls who can truly supervise your
> operations, this is a sure way for disaster too. As for Niederhofer, that was
> another story and exactly the way you described it.
>
> Thomas
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