Tuesday, October 21, 2008

Whom is Kidding Who?

Whom is kidding who?
{If logic in economics no longer applies perhaps it also does not apply to grammar.}
For experts to imply that a curb on predatory lending and closer oversight on regulation of regulation-exempt devices would prevent future credit crunches is beyond naiveté--it suggest the wolves are in charge of the hen house.
The cause of the collapse of capitalism was the infinitely leveraged speculation on housing and crude oil. When the wolves bet right they became billionaires. When they bet wrong they left their institutions in unsustainable debt and open to bankrupsy or carrion asset to be picked over at vulture’s prices.
Regulation--exempt instruments such as
hedge funds, Derivatives, and CFS’s (credit failure swaps) provide infinite leverage under the cloak of incomprehensible complexity.
The 2nd Court of Appeals in June 2006 confirmed that since hedge funds were open only to the super rich and such institutions the general public was excluded and had no interest to be protected.
Only capitalism itself is at stake.
Infinite leverage with two day settlement results-in wild price–swings and tulip like bubbles. The only obligations of sufficient size to threaten a major financial institution with bankruptcy are leveraged lost bets.
CEO’s who cashed in personally while wrecking their companies are guilty of fiduciary malfeasance Restitution reclamation of their plunder is justified and required.
As Sen. Dawkin almost recommended in the hearing ban all unregulated leverage devices from American markets.

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