"The Wheat Board Clucks Again."

[TOM4CWB]

Jensend,

I did hear him ask us to use 'Common Sense' to fix this problem... what was wrong with that?

SERIOUSLY THOUGH...

Fransisco... we need to do a special on the CWB's new Variable pay scheme!

The more the CWB managers... can discount our wheat... of course to make the 'customer' happy (to get extra bonus points)... and convince we slaves in the 'designated area' that CWB PRO's are fair prices (even though the 'target pricing pace' and PPO levels are at $100/t discounted basis/priced levels... [worth some 35 bonus points in this ponzi scheme]

And that 'discretionary' losses of a couple of hundred million $$$... simply caused the CWB sold early last pool year... and then bought back at the top of the market last winter... [which is all within our tolerance levels of the 'single desk' and contingency fund financial capacities]

That These brilliant CWB managers moves are be rewarded with freshly elected and minted 'single desk' directors... WHY shouldn't CWB managers be receiving up to 30% bonuses... for such brilliant mismanagement of my families money and farm!

Wow... Franny... the world is truly spinning as it should... we and the CWB... equally as messed up as the US/FED & government!

Now lets see...

To top the new year off...

Can we get Iggy and Jack in power... in the coalition first thing after the budget... and complete the COUP!

Then the Quebec separatists would be forever thankful!!!

Isn't this why we exist... to tear our country apart... in the most effective way possible???

What do you think Fransisco... should we make our own movie???

[classicalliberal]

The definition of derivatives is financial instruments created by market participants so they can trade and/or manage more easily the asset upon which these instruments are based. Their values are derived solely from an underlying interest which may be a commodity such as wheat or a financial product such as a bond or stock, a foreign currency, or an econmic/stock index. The current financial crises is caused to some degree by the subprime mortgage crises which is where banks and lender were lending money to those with bad credit because they were speculating that the asset value (house) would be worth more if they defaulted. Loan securitization is when banks bundle up loans and other interest paying securities and sell it in the over-the-counter markets to get the loans off their books. Companies like Moody's who are supposed to rank the various securities in terms of their credit risk did a poor job of analysing the risks associated and then the people of bad credit started defaulting and there was a large supply of forclosed homes on the market which has brought the housing prices down significantly in the US. Derivatives have been around since the 1850 with the Chicago Board of Trade and they significantly reduce the costs of doing business because risk can be transfered to those who are willing to take it, like $7 corn futures as an example. no end user wants to buy corn that high, but some speculator might and thus you can hedge corn production at around $7 per bushel when the cash market doesn't want it. Derivatives are an excellent tool and unfortunately have a bad rap now but it is not necessarily the fault of the derivatives.