In message <9408290556.AA28298@ah.com> Eric Hughes writes:

The law and the enforcebility of agreements is what makes financial instruments exist. Their behavior is a direct result of their legal underpinnings.

This is absolutely false. Both a promissory note and a bond can have identical financial structure, but the legalities are completely different.

This is absolutely illogical. He says, laws underlay financial 'behavior'. You say, [law1] -> [behavior1] and [law2] -> [behvarior1], and THEREFORE the proposition fails. He did not say "there is a one to one relationship between laws and financial instruments". What he says permits an N:1 relationship, or an N:M relationship. -- Jim Dixon