From: Peter Wayner <pcw@access.digex.net>
Date: Mon, 18 Apr 94 13:20:56 PDT
To: perry@imsi.com
Subject: Re: Dirty Laundry...
Message-ID: <199404182020.AA04865@access3.digex.net>
MIME-Version: 1.0
Content-Type: text/plain


I'm perfectly willing to do a "live" demonstration of money laundering
using the futures markets. In your last private letter, you suggested
that we use real money. I see no reason to do for two reasons:

1) Commission costs and other fees are prohibitive for the small
amount of money that I have. Plus, why would I want to spend all that
money just to prove a point to you?

2) I see no reason to go out and borrow money for what is essentially
an academic exercise. This is a game for the rich. If you've only got
to move $10,000 then cash and Fed Ex is fine.

So you are welcome to add all of the margin requirements and stuff and
we'll work it out on paper. (I'll even sweat a bit for real, if you
want.) Make out a list of the transaction costs and margin
requirements and I'll come up with a target sum to transfer. Then we
can figure out the risk strategy to pursue.

The only problems I can see in doing this well is finding a source of
futures prices. I don't have a live feed and I don't have the time in
my day to sit on a terminal waiting for the right moment.(I've wasted
enough on this argument.) Closing prices are okay, but they are not as
efficient as using all of the noise in the market during the day.

Oh, I wanted to point out one other fact about swapping tickets: It's
illegal. But it is not clear that it is illegal to just place bets
on both sides of the market.