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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (34295)	3/24/2009 10:27:26 AM
From: DuckTapeSunroof	Respond to of 71588

Re: "I was asserting that the powers they held for many decades were sufficient to deal with the situation...." On that I completely disagree. The Fed has been pushing on a string for some time now with short rates... and the Fed has NO statutory authority (yet) to address the regulatory problems (for example: naked gambling in CDS) that exacerbated the global financial crisis and raised it to the magnitude that it is at. Issuing TEN DOLLARS in CDS (all totally unbacked by any collateral) based upon every ONE DOLLAR of mortgage paper is pure GAMBLING --- and not a valid 'insurance operation' at all, since for nine out of each ten dollars in paper there in no insurable interest at all. PURE GAMBLING. (Now the gamblers are having their bets rescued by the taxpayers.... :-( Re: "The fat cats in this case were the people who ran the investment houses." OK. Re: "While some of them are also investors, many just take the money and spend it." Oh... as in their use of public bail-out funding to pay sky-high "performance bonuses"? A "heads we win, tails we don't lose" kind of corporate insider policy.....