Richard, What are the objections of the New Admin prohibiting all publicly traded banks and corporations from owning or trading derivatives?
________________________________ From: R C Macaulay <walha...@cvtv.net> Like illusionalists, Dubai and many so called sovereign wealth fund nations, are composed of smoke and mirrors like Enron. Come payday and the response is 'no sabe'. Perhaps the largest magician of all is Merrill Lynch. They passed themselves off to BoA as pure cherry pie. Not even the Fed can grasp the depth of the tangled web at ML when they stopped counting at 40 trillion dollars of exposure . There is some 350 trillion( nobody knows how much more) in derivatives ( big D) floating around the world cesspool. A big D is not even a piece of paper, it is an illusion created for the purpose of making a lender believe there is an underlying asset keyed to some debt instrument. For example, Enron bought two rusty barges and formed a "offshore floating crude oil storage "facility" near Nigeria. ML showed Enron how to "magically count" the two barges as a series of "fleets". The leadership at Enron got so caught up in the illusion that they began to believe the magic themselves. Most investment banking firms on earth started doing it. Now, nobody is sure how much is out there and nobody at the Fed really wants to know Any attempt by the Fed to "translate" a big D into some type of asset requires that the Fed assign it some value. The minute the Fed assigns a value, the Fed has to buy it. BO should enjoy his day in the sun before the rain.. Richard
