Tuesday, May 5, 2009

Late Stage MBA- Josh Moritz- The $100 Derivative Guantlet Award

My last post got a response from Tyler who feels that the buyers of Derivatives are as responsible for their mistakes as the sellers. I agree. But what I don't agree with is that derivatives are as easy to understand as guns (don't point at yourself, you might shoot yourself) or as TV (just shut if off).

99% of us are getting an MBA to enhance our careers, which means more money or to use the degree in leveraging our passion whether it be a cause or to start a company.

There will always be a debate about fuzzy math and caveat emptor, but I believe that our responsibility is to be honest brokers of information. If we don't get it, we don't sell it. Idealized.

Since Tyler feels that the buyer beware, and I maintaint that the sellers were less than knowledgable, I throw down the guantlet. A $100 award for a debate between brokers circa 2006 and CFO's from small to medium sized municipalities, circa 2006. One has to pitch derivatives the other has to explain what they bought. The audience clap meter will tell us who wins.

I offer anyone this: 1) It has to be a debate has to be referreed by Babson professors with backgrounds in finance, ethics and law; 2) The rules are still in flux, so come up with a structure.

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