On Tue, Apr 21, 2009 at 6:51 AM, Gruss wrote: > > I totally agree with him. > ------ > > Now, he realizes that more regulation of our financial markets is > needed, employing a typically entertaining analogy to illustrate his > point: > > "If you're worried that lions are eating too many zebras, you don't > say to the lions, 'You're eating too many zebras.' You have to build a > fence around the lions. They're not going to build it."
I don't know that I would say we need more regulation, but we definitely need different regulation. Your example of AIG selling, in effect, insurance disguised as credit default swaps is a perfect example. To me that sounds like fraud - using a technical trick to get around the regulations governing the sale of insurance. If it's insurance, it should be treated like insurance, regardless of the instrument. But that's just the tip of the iceberg. The "21st century" regulation mantra sounds right to me. Regulation needs to keep pace with the fact that money can move around the globe 24/7 at the click of a mouse, it needs to capture tricks intended to bypass existing regs, etc. No big revelations there, just some common sense. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:295568 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
