Wall Street Meltdown Primer

by Walden Bello

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Was this a case of Wall Street outsmarting itself?

Definitely. Financial speculators outsmarted themselves by creating
more and 
more complex financial contracts like derivatives that would securitize
and 
make money from all forms of risk - including such exotic futures 
instruments as "credit default swaps" that enable investors to bet on
the 
odds that the banks' own corporate borrowers would not be able to pay
their 
debts! This is the unregulated multi-trillion dollar trade that brought
down 
AIG.

^^^^
CB: How about a law that proclaims that the result of such processes ,
such financial contracts, shall not be money or any other form of value
?



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