Just basic concepts from high school physics and chemistry,based on the laws of conservation of mass and energy. This isn't exactly E=MC2

Like the rest of us nerds here at TOD, you were probably sitting in the front row of Mr. Kotter's science class, raising your hand, and saying, "Ooh ooh, Mista Kotta, I know the answer to that question. It's simple, energy and mass can neither be created nor ..."

But if you had bothered to turn around and look at the back row, you'd of seen Vinny and the boys dozing off on their desktops (these were not computers back in the old Mr. Kotter days) ... probably they was dozing off on Ludes and stuff.

Anyway, many years later, Vinny and the boys woke up and realized they need to become "professionals" and get a job. "Go to business school," their moms said. And so they did.

There they learned fundamental principles of "economics", like supply, demand and how the bountiful commodities of our society are "produced" (yeah, yeah, "created", whatever) by them who do the "producing" in our society.

But financial types don't have to worry about that techno-nerd stuff. Financial types do the financing. That's their job.

"You want a default derivative swap buddy? I got one right here for you pal."

"Physics? Chemistry? The laws of conservation of mass and energy? E=MC2? Sorry buddy, I don't remember any of that elementary stuff. That's only for Fifth graders. Right?"