This is bad, but it is most definitely not 'extremism as its worst'. The fundamentalist muslims have that market cornered for now. But I think all fundamentalists are dangerous. Given a chance the Christian fundies would be just as bad. m
Not really. All that these people are doing is trying properly price historical correlation vs implied correlation (implied by the differential between equity and mezzanine yields), which is pretty similar to pricing implied volatility vs historical. A whole bunch of people are selling gamma/vega in the form of index options, would you call them gamblers?
"But I think all fundamentalists are dangerous. Given a chance the Christian fundies would be just as bad." What examples in could you give that would support your statement It is absolutely intolerable to be a thinking person and compare Christian Fundamentalists with Muslim Fundamentalists. Please give name a fricken Protestant Preacher who goes around Preaching violence of any kind. Yet alone accusing the whole movement of being potentiallyviolent. It is dangerous to make such stupid comments.