The USA now has its own sovereign fund (sort of) to fight deliberate destabalization efforts.
(ala currency manipulators)
I don’t think that is the biggest problem. The biggest problem and worst outcome from this is the life line the bulge bracket BDs get from Paulson to save the hundreds of thousands of jobs.
The whole manual markets model needs to be shot. If there was an electronic market for the CDOs they would have dropped in value so fast there would not be so many of them. All these trading desks should be replaced with computers.
The solution is to eliminate all private security trading by insured and/or public entities. We should also repeal the repeal of Glass-Steagall.
But the thing that screws individual investors the most is the blatant everyday violations of Reg FD.