[PieterCasparzen]

Thanks for posting, great article.

[Steely Tom]

Steely's Law:

Any entity that is "too big to fail" will become a magnet for all risks assumed by comparable entities in the ecosystem.

[Paladin2]

Derivatives are bad and un-supported derivatives need to be taken out back.

[taildragger]

"Speculative derivative instruments such as credit default swaps (CDS), which caused the failure and government bailout of American International Group, could never exist in significant size were in not for the safe harbor from bankruptcy for derivatives created by Congress in the 1980s and 1990s. Members of Congress from both parties were paid very well for their treachery."

I used to think Senator Charles Grassley was a square in the go-go late 90's when he didn't go for getting rid of Glass Stegal and the other 2 Clintonian Banking and Brokerage reforms.

Man was he right on.

There is a video of Chris Shays going mano-e-mano with Barney Frank where he talks about Moral Hazard.

The whole Financial world, Sarb-Ox and Dodd - Frank were all centric on "systemic risk". Systemic risk my @$$ what about moral hazard? Don't any of these people or these legislators have a Christian Conscious and know the fundamental difference from right and wrong or am I just a nave from Fly-Over Country?

Beam me up Scotty, no intelligent life on the House and Senate Finance Committees or K-Street...

[2banana]

So why do so many cities even DEAL with CDSs?

Sorta like meth?