It’s so easy to rationalize bad decisions. First we abolished Glass STEAGALL.
- Why? We allowed Bankers to break the law repeatedly , in effect, gutting the law. We could have said no to the law breakers, but they were Bankers and Bankers, unlike the poor “pot dealer”, gets a pass!
Then we allowed credit default swaps to become part of the most risky banking schemes. These “Weapons of Mass” destruction, caused the crash of 2008.
- So what’s the remedy? Eliminate them, NO.
- We’ll impose Margin requirements on them, another risky product. I know, I’ve survived Margin Calls .
- This is the ” regulators”, new best hope of curtailing Swap risks? I can only wonder, what are they thinking? Allowing the most risky financial instrument, to remain is bad enough. Creating further risk to liquidity is worse. If you want to eliminate the problem, eliminate the product.
- Or think , win win for the Country, profit from their existence. Let these instruments set aside 6 cents on every $100.00 bundled and finance the next round of stimulus. $660 Billion is meaningful. Otherwise , the Bankers and Shadow Bankers get to keep all this money and continue their gambling.
- Why not get serious about these trades. Eliminate them or tax them and make them 100% transparent.
It’s budget time in Congress, time to think about debt ceilings and revenue! Why not act responsibly on both, for the sake of the Country?
“The heart and pulse of the Middle Class”