> I generally feel that I have a reasonable grasp of thongs

preserved before you can edit!

Yes. I generally feel that I have a reasonable grasp of thongs, but then I read an article like this and a lot of it makes me stop and try to figure. It's definitely not something I have a good grasp of.

Scoresby

I once heard a talk called "Hedge More, Bet More", which argued that due to asymmetries in beliefs, if you give traders more tools for hedging (i.e. managing risk), you actually cause them to bet more on the beliefs they hold more strongly than the market.  Multiply that across many different traders with many different beliefs, and introducing new tools for hedging actually amplifies market risk coz people make bigger bets.  I thought it was an interesting idea.

A personal goal of mine is to read something like that and actually know what he's talking about.

That's basically the reason I started studying economics in college.

Stacker_Stocks

Reading Peter Muller - gappy

I once heard a talk called "Hedge More, Bet More", which argued that due to asymmetries in beliefs, if you give traders more tools for hedging (i.e. managing risk), you actually cause them to bet more on the beliefs they hold more strongly than the market.  Multiply that across many different traders with many different beliefs, and introducing new tools for hedging actually amplifies market risk coz people make bigger bets.  I thought it was an interesting idea.

> A personal goal of mine is to read something like that and actually know what he's talking about.

That's basically the reason I started studying economics in college.