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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (99540)	11/9/2008 4:43:22 PM
From: Robin Plunder	6 Recommendations Read Replies (1) \| Respond to of 110194

"You mean like Credit Default Swaps where private counter-parties were permitted enter into insurance contracts in an unregulated "laizzez Faire" manner based upon fraudulent ratings worthiness from Moody's and S&P?? Look what resulted from this "shadow banking system" that was operating completely removed from the regulatory control of financial supervision. " more wild assumptions here....need to connect this thought process to facts...our "managed" economy has been spiralling out of control since the 70s, when we left the gold standard and started printing money exponentially...the currency and interest rate derivative markets are an outgrowth of the fact that we have floating currencies which are tied to nothing, so business has no choice but to hedge against fluctuations. any regulator can be bought, as witness the recent wave of deregulation which allowed investment banks to increase leverage...and then the banks dont care anyway because they will get a bail-out, and get hired by govt to unravel the goofy transactions they put in place to begin with...better to have a gold standard to avoid these massive derivative problems, and let the banks go bust when they make irrational choices. robin