Wall Street is now winding their way through the swiss cheese loophole maze financial reform is. Remember credit default swaps, those deadly, bad math, bad computation derivatives which were behind the financial crisis? These same types of risky derivatives are making a comeback masked as futures.
Wall street has found a new way to avoid regulation and continue their derivative CDS gambling casino and it is setting up the way for a new financial crisis. They are re-wrapping credit default swaps and other derivatives into futures, which are exempt from Dodd-Frank. more stringent regulations.The Economic Populist
Wall Street's Derivative Shell Game
Robert Oak
Zombie finance? Looks like the Ponzi phase is not over yet.
See the issue? Traders can morph higher regulated derivatives into futures with less oversight and less margin requirements, thus putting the financial system at risk....again.
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Ellen Brown has a pretty good article up. It discusses the recent Turner and Martin Wolf articles and has some interesting quotes from the President of Iceland. It doesn't necessarily break any new ground and reprises the "bond vs. buck" discussion that has been hashed and rehashed on MMT sites. Still, I'm not sure if we can get away from the formal distinction between gov. "borrowing" and gov. "money." I noticed the other day that even Mr. Cullen Roche was describing government spending as "taking from Peter to pay Paul in exchange for a T-Bill." You see how this works; he's saying that something is being high-handedly taken away from the sainted private sector (Peter) to give to some less deserving entity (Paul) via an (questionable) IOU. I know he understands perfectly well how it works but his current opinion seems to be rather in line with standard neo-liberal spin. http://webofdebt.wordpress.com/2013/02/13/how-congress-could-fix-its-budget-woes-permanently/#more-5406
But are not these regulated futures exchanges better regulated than the OTC swaps were?
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