A way to price risk but the way to price risk is the need to know time time best have value time has to use the underlying prevailing Interest Rate to establish a baseline of the value of time from now on the curve from short to long so if youre negative as weve said before you have no value of time as a matter of fact time as a negative value i have often quipped that negative Interest Rates are a way for Goldman Sachs to go backwards in time and steal from clients in the past you know having looted all their current clients and future clients they need to go backwards in time so negative Interest Rates give the opportunity to commit crimes in the previous decades but put in the time machine aside. The negative rates make the entire proposition financialization moot because without a baseline to value risk and to value time you have no basis to value this financial eyes post industrial economy whatsoever its all basically a guessing game which weve said for many years that all the val
Been on a stock and the option is the buy the stock in the 6 months in the future and the underlying stock goes up and down a lot then you have an implied value for that option right and so its a way to price risk but the way to price risk is the need to know time time best have value time has to use the and align prevailing Interest Rate to establish a baseline of the value of time from now on the curve from short to long so if youre negative as weve said before you have no value of time as a matter of fact time as a negative value i have often quipped that negative Interest Rates are a way for Goldman Sachs to go backwards in time and steal from clients in the past you know having looted all their current clients and future clients they need to go backwards in time so negative Interest Rates give the opportunity to commit crimes in the previous decades but putting that time machine aside. The negative rates make the entire proposition financialization moot because without a baseline
Market which followed only 10 years after this you can trade an option that has no Intrinsic Value at all it just has implied value based on. Time to time value plus. The volatility or beta so if you have been on a stock and the option is to buy the stock in the 6 months in the future and the underlying stock goes up and down a lot then you have an implied value for that option right and so its a way to price risk but the way to price risk is the need to know time time best have value time has to use the and align prevailing Interest Rate to establish a baseline of the value of time from now on the curve from short to long so if youre negative as weve said before you have no value of to. Time as a matter of fact time as a negative value i have often quipped that negative Interest Rates are a way for Goldman Sachs to go backwards in time and steal from clients in the past you know having looted all their current clients and future clients they need to go backwards in time so negative In
There this is the kaiser report we get into it like you probably are used to so if youre not used to it get ready stacey hey max well you know what we have a topic today that is right in your court and that is i know you used to be an options trader on wall street so we have some stories from the Options Market and the topsy turvy world where the black in shoals formula was supposed to get rid of risk it was supposed to help separate risk and reward this paper was published in 1983 the black initials options formula and negative rates are rewriting the rules of modern finance negative Interest Rates have quite literally broken one of the pillars of modern finance as a columnist and central bankers weigh the pros and cons of sub 0 rates and their impact on the world traders have been contending with a rather more mundane fundamental issue how to price risk on trillions of dollars of Financial Instruments like Interest Rate swaps when their complex mathematical models simply dont work. R
We will now proceed with Opening Statements. I wish you all a good morning and welcome to the fourth hearing in the economic Emergency Management subcommittee. One of the purposes of this committee is to protect taxpayer dollars by ensuring they are spent effectively, efficiently and with transparency. That brings us to todays hearing which is entitled landlord and tenant. You can tell from the title that today we will be investigating fairly unprecedented situation. The federal government owns the building that houses President Trumps d. C. Hotel hotel. Since President Trump has declined, he is essentially acting as both the landlord and the tenant. Before i was elected to congress , over three decades Teaching College students about American Government and politics. Serious discussions about the legislature holding the executive Branch Accountable to the highest legal and ethical standards and that is exactly what we hope to do today. First lets start with some facts. All federal wor