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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (8670)	1/29/2017 4:20:26 PM
From: i-node	Respond to of 361416

>> But it is, or at least was, very possible to bundle that debt as a CDO, just like mortgages and auto loans. Or, for that matter, rental income. And once you have a CDO, it is possible to hedge and/or bet against that instrument. Yes. I've seen them based on Bad Debts. But that doesn't mean they pose a threat. Whether it becomes an issue depends on open interests. And the change Brooksley Born tried to get Rubin to make was to simply start requiring derivatives to be reported and handled through an exchange which would have controlled those numbers. That is, allow the free market to work. And Rubin refused, instead firing the brightest mind on that topic in the country.