technique. If you're afraid that the economy is going to go into the toilet and you hold a lot of risky assets, you're going to want to hedge those risky assets because you can't sell them when the economy is going to the toilet because markets become illiquid. So you want to buy essentially economy in the toilet insurance. And that's what Eurodollar Futures are. If you buy Eurodollar Futures, betting that the economy is going to be bad or the market's going to be bad, liquidity is going to be bad, whatever the case may be, they're going to pay off when interest rates, money rates go down in the future. So the more that the market wants to hedge in that fashion, the more we know it's afraid of something big. And so again, Lehman Brothers, a 45 basis point swing in Eurodollar Futures, that makes sense because the market was saying, holy crap, I need to hedge my assets because I'm not going to be able to sell them. If I get into some kind of liquidity trouble, I'm stuck with these things (11/57)
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