The only answer is to outlaw financial derivatives such as Credit Default Swaps retroactively, and nullify them.
The marketplace was doing that nicely before Paulson intervened. The problem with nullification is lots of corporate equity will vanish with the financial shock. So it has to be done slowly and carefully.
>>>The only answer is to outlaw financial derivatives such as Credit Default Swaps retroactively, and nullify them.
Plan B to this approach: any such Bailout To End All Bailouts includes wording to the effect that any derivative NOT ON THE BOOKS of corporations is null and void because they lacked transparency and hence must be a fraudulent conveyence. The accountants certifying the books should be fined for each occurrence.