Yes, I know. And I tried to decipher what you really meant.
So some of you have issues with Wikipedea.
Only because we prefer accuracy.
The way that works is someone with your knowledge goes there and corrects things so that it is reflective of accurate information.
Wouldn't waste my time.
This would have been on bonds that Fannie and Freddie hold, on 1.5 trillion in mortgages
You are incorrect. Fannie and Freddie had a govt guarantee. No need to write CDS on their bonds.
Only a moron could believe that the dangers of the sub prime loans would not have been discovered had there been oversight of that market.
And only a moron believes that outlawing CDS would have somehow prevented the bubble.
The OTC market is still doing what it did to get us into this mess.
The OTC market has nothing to do with bad mortgages. Sorry. Banks holding mortgages that never traded a CDS were also big losers when the market collapsed.
I have never said that outlawing OTC derivatives or the CDS's was necessary, recommended, or required. If the regulation recommended by Brooksley Born had been implemented then they would have discovered that not only the Bonds held by the GSEs but the private sector OTCs and CDSs too were all at risk because of the risky sub prime loans and the ARMs.
So go back a couple of decades and we have the Junk Bonds and the Savings and Loan scandals. After that all the elected officials came out and said that this will never happen again. It only took them 20 years to go from Junk Bonds to bonds made of junk.
You must know that the SEC monitors for inside trading? All Brooksley Born requested was that there was someone to investigate and prosecute shady dealings in the hidden OTC market. Last time I checked, you can't go public secretly and with a Ponzi scheme as a prospectus. Although that never stopped Bernie Madoff.
It looks like staying away from Wikipedea has not prevented you from being in error. Brooksley Born did not want to kill the OTC market.