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> From: knowknot at mindspring.com
> But (even if in any one particular instance this can be so), the notion
> that "[a] letter of credit is not in general a financial instrument" --
> especially, the "in general" qualification -- is seriously even if
> unintentionally misleading.
>
> Yes - some (of the total worldwide: a comparatively small number of)
> letters of credit are revocable and some are not negotiable; but, for the
> most part (i.e., "in general") there is a comparatively huge market,
> nationally and internationally, for these (generally: negotiable)
> instruments.
Well I'm not going to disagree with you outright, particularly as this may be a terminological difference, but I don't agree that the default for a letter of credit is to be negotiable (I would call a negotiable instrument a bill of exchange) and I don't agree that there is a huge secondary market for them. In any case, I'd say they were monetary instruments rather than financial ones, and I stand by my view that anyone bringing them up in discussion with someone who hasn't specifically asked for one is quite possibly doing something they shouldn't. Maybe it's just the old regulator in me.
best,
dd
PS: The fact that 75% of Americans haven't heard of blogs is yet another testament to the sound common sense of the plain man.
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