Ping!
Talk of reforming any instrument or market is useless without first fixing the root of all these problems: the boom-bust cycle created by the easy-credit policies of the Federal Reserve.
AUDIT THE FED.
END THE FED.
It will work great if just the right people are in charge.
The libtard mantra. It’s just that there are no “right people” to be in charge of something that will never work. Not even zero. Especially zero.
Two reforms would solve the issue.
One, total transparency on each derivative position reported each day.
Two, Mark-To-Market total liability and price value on each position reported each day.
If the positions are highly customized, illiquid, and cannot be truly valued in the derivative markets, as allegedly happened during the meltdown, then the position should be valued as a 100% liability.
Don't want 100% derivative liabilities on your books?
Fine, then don't create ultra complex derivative positions that cannot be truly valued in the market.
As to derivative insurance policies, like AIG went bankrupt on, the same rules can apply.
If the derivative cannot be truly valued, then the derivative insurance policy can't be truly valued, and the policies should be carried on their books as 100% liabilities.
Don't want the liabilities?
Then, don't write the insurance policies.
Obviously Wall Street has been bribing Barney and the other Democrats with campaign donations. More evidence why Wall Street is a cesspool
Derivatives are the same as steroids in the media. The reporters are far too lazy too figure out what they are talking about.
Over-the-counter derivatives have created a monster: a Wall Street hell-bent on destroying America for profit. They bribe the politicians to keep their private rights to plunder America’s wealth, and Democrats gleefully go along because it gives them the campaign contributions they need to stay in power. Wall Street has become the new trial lawyers, a group that rigged the rules to make themselves wealthy at the expense of all Americans through higher prices on everything and wasteful spending on health care reform.