100 Year Flood / The Waterline on Risk

JP Morgan one hundred years later in the middle of a rescue plan to save the markets from internal meltdown as it did during the Panic of 1907. Just as then, the waterline on risk has been raised on financial instruments. The transactional hunger which drove the subsequent positions based on sub-prime executions are coming into the the transparent light of the marketplace and are an example of how the markets will continue to move from opaque to clear trading. However, even given the additional clarity, the edge for traders will continue to move into the value created by analytical methodology as knowledge based trading flattens. The cost of information will continue to be driven towards zero as will the cost of transacting business based on that information.