Dude, there was this magical thing called 'financial engineering' from which a profit would appear after the magician did his little trick. There are synthetic financial products which arent traded but nevertheless developed for situtations such as this. As to margin calls etc this could be covered be margin lending facitilites. Writing or selling a combination of put or call options could also be used. Dude, it aint difficult especially when you have such as large holding and especially if Tricom were lending you money.
Theres no magic invloved, just a manipulation of circumstances which seem to create an illusion of a profit. Dude I did a paper on the subject and the lecturer was quite impressed that I brought it down to such simple transactions.
The beauty of what MFS etc did was to leverage off leverage off leverage, yet seemingly to maintain separate and distinct transactions which from a banks point of view hid the significant leverage. Like any using long CFDs in a rising market, money for jam, but in a falling market, what out as total diaster. The sub-prime crisis has put pay to the ability to borrow cheaply and to n have infinite leverage.
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Dude, there was this magical thing called 'financial...
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