Free Republic

the bogey man known as “systemic risk” to gain advantage over the other creditors . ... In order for the OTC casino to work, the derivatives contracts had to be given special priority in bankruptcy. 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. ... The intellectual author of the “systemic...

WHEN Greece ran into financial trouble three years ago, the problem soon spread. Many observers were mystified. How could such a little country set off a continental crisis? The Greeks were stereotyped as a nation of tax-dodgers who had been living high on borrowed money for years. The Portuguese, Italians and Spanish insisted that their finances were fundamentally sound. The Germans wondered what it had to do with them at all. But the contagion was powerful, and Europe’s economy has yet to recover. America seems in a similar state of denial about Detroit filing for bankruptcy (see article). Many people...

Full title: Detroit Has No Horses But Pays $56K for Horseshoer — Union Boss Says It’s ‘Not Possible’ to Eliminate Positions The Detroit Water and Sewerage Department (DWSD) pays a “horseshoer” $29,245 in salary and roughly $27,000 in benefits. There’s only one problem — Detroit has no horses for the horseshoer to shoe. Some critics argue that the department has been turned into some sort of a government jobs program. Meanwhile, the local union president says it is “not possible” to eliminate positions