> gg wrote:
>> Sam wrote:
>> L. Gordon Crovitz has real credentials and doesn't seem to agree with you.
> That's because he's a moron.
>

Here's another guy that doesn't ... well maybe didn't ... agree with
me.  Alan Greenspan.

Here's what he said on July 16th, 2003:

"The vast increase in the size of the over-the-counter derivatives
markets is the result of the market finding them a very useful
vehicle. And the question is, should these be regulated? Well, indeed,
for the United States, they are obviously regulated to the extent that
banks, being the crucial creators of these derivatives, are regulated
by the banking agencies, but not beyond that. And the reason why we
think it would be a mistake to go beyond that degree of regulation is
that these derivative transactions are transactions amongst
professionals. And the institutions which are involved have very
considerable what we call counterparty surveillance, where, for
example, one major bank will know far more about its customer, whether
it's a bank or something else, than we could conceivably know as
regulators. In a sense, this counterparty surveillance has become the
crucial element which has created stability in that particular
system."

That also happens to be the same time when Warren Buffet told Bush
that derivatives were weapons of mass financial destruction.

I guess the decider-in-chief didn't decide too well, huh?

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