In my part of the country, many of the mountain roads do not have safety markings. The U.S. Forest Service mainly uses these roads to maintain firebreak and to insure access in the event fires do break out. The Forest Service employees drive these roads cautiously, well aware of sharp curves, washouts an 500-foot vertical dropoffs. Management doesn't see the need for signs to warn them of hazards or to limit their speed.

It's a little like the market for financial derivatives. As long as you have highly knowledgeable individuals navigating the derivative roadways, you don't need meticulous disclosure to warn about hazards that may lie ahead. However, when the market involves inexperienced and untrained players--the equivalent of tourist drivers on forest roads--you'd better put up warning signs.

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