And yes, there are scummy guys and gals on Wall St, just as there are on Main St.
My point was this... ultimately, it is up to the buyers of bad investments to prevent con-artist anywhere and everywhere from scamming them.
Banks and other presumably sophisticated investors bought these derivatives and I place the fault squarely on their shoulders. These products were not sold to individual investors...there are laws to prevent that or at least to require enough transparency that the man on the street can understand what he is buying.
But I don't recommend enacting laws that prohibit the development of financial product because, for the most part, it is difficult for legislators and regulators to write rules in such a way that good ideas are permitted yet bad ones are squelched.
There is always someone just around the corner attempting to sell a pig in a poke or some good swamp land, isn't it socialistic for the government to take away a buyer's right to make his own decision.
And knowing how crooked legislators are (they are the very worst con-men...even worse than those on Wall St), how could we ever expect them to enact laws that don't benefit their friends and hurt their enemies (in the financial biz). Goldman would love to help out in just such an endeavor.
Whatever..... I disagree. Thanks for your thinking on it. The global warming scientists also think they put out a good product. AlGore thinks he is a business genius and innovator