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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (176879)	1/13/2009 5:05:35 PM
From: neolib	Respond to of 306849

I'd suggest looking in a little more detail at private money creation. You seem to be ignoring that aspect. Look at the games GS played in securitization, and the need for more low quality loans so they could place 4x bets against them. One would not even need regulation per se to have prevented that, just good transparency. If the people buying the MBS could have seen the private bets GS placed against them, they might have been a little less willing to buy those securities from GS. Given the fact that it is all electronic anyway, there should be a simple tag associated with each security showing the value and holders of CDS held both for and against it. That would be very therapeutic for the free market.