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

To: Skeeter Bug who wrote (177633)	1/17/2009 2:33:04 PM
From: James Hutton	Read Replies (1) \| Respond to of 306849

"name one time in history were GDP of the planet was bet on something like our "best and brightest" bet on credit default swaps." Although I wasn't able to find GDP numbers for the planet's history, how about portfolio insurance, which predates the greedy Clinton era, was similar in concept to credit default swaps, and was one of the main factors in bringing about the 1987 stock market crash. Also, if memory serves correctly, the Panic of 1907 was brought on in part by bucket shops, which operated similar to credit default swaps in that one could bet on whether a stock was going to rise or fall without taking an equity stake in the underlying company. Now, if you are saying that Clinton shouldn't have signed the CFTC modernization bill, then I agree. And he shouldn't have signed the bill that repealed Glass-Steagall. But these missteps really just continued the deregulation trend that began in 1980 (or even before if you listen to some).