Zeev's Turnips Patch-No Politics (ZEEV)

[Train Guy]

-- Roughly speaking, if markets are half as volatile, banks' positions can be twice as large for the same amount of capital. But since VARs have in fact risen, some banks' positions are probably three times what they were in the autumn of 2002. --

Well this explains why the markets have been going in one direction for almost a year now. Da boys can't afford to let it go down. The exits aren't big enough. It also explains why program trading keeps increasing. It's the only way they can keep it going. Eventually there's going to be a straw that will break the camels back. Not going to be pretty.