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  • Dorgan’s Naked Idea – Doesn’t Work

    As debate on the Wall Street “Reform” bill winds down in the Senate, Sen. Byron Dorgan (D-ND) is still pushing his ban on “naked” credit default swaps.

    We warned that the idea wouldn’t work. Now we have some real world experience with just such a proposal: Germany banned the practice in German financial markets Tuesday night, and stock prices fell in Germany and worldwide.

    Observers called the German ploy “an act of desperation and a refusal to address the fundamental problems at hand,” and warned that the move could cause trading in swaps markets to freeze up.

    Swap prices are a symptom, not a cause of credit problems.  Restricting markets will not solve economic problems in the US any more than they did in Germany.

    Posted in Economics [slideshow_deploy]

    2 Responses to Dorgan’s Naked Idea – Doesn’t Work

    1. Alan MacDonald says:

      Generalized answer: Yes, Empire. No, regulation!

      There will be no regulation of the Global Empire — financial, ecological, social, military, legal or otherwise.

      The Global corporate/financial/militarist Empire that controls 'our' country does not want, and will not suffer, regulation of any kind to get in its way!

      Best luck against this Empire,

      Alan MacDonald

      Sanford, Maine

      PS. Note to your editor — You should not ever use an American flag in a picture of Wall Street —- as no corporate CEO will allow himself to be filmed saluting and saying the pledge of allegiance.

    2. Billie says:

      As perverted as the democrats are, must they use the term "naked?" It only furthers the evidence. j/k.

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