Words were the greatest human invention in the field of obscuring the truth – until the creation of MBA degrees. The derivatives markets, Philip McBride Johnson argues, are suffering from an acute image problem, relative to the securities markets. This is not because derivatives are inherently riskier, but because the securities spinmeisters do a much better job.
A great step in the evolution of Man was the creation of a language (actually, hundreds of them – not really helpful). It became possible to convey images through sound. We were enabled to express our love (or lust) for a mate without risking arrest for molestation. We could indicate disagreement without a beheading. And we could make each other laugh without sitting on a carrot.
But then things began to get ugly. Into the vocabulary came special words that were different from what they tried to convey. Or,...