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Congress Woman Introduces Bill to Ban All Credit Default Swaps
Posted By admin On July 18, 2009 @ 4:08 am In Commentary | Comments Disabled
Washington’s Blog 
Saturday, July 18, 2009
I’m a little late to this story, but last week Congresswoman Maxine Waters introduced a bill  to ban all credit default swaps.
As Waters said:
Preventing all credit-default swaps is essential to bringing stability to the market and preventing a similar crisis in the future.
Indeed, just today, Credit Sights published a report  documenting – as I have previously pointed out – that CDS drive companies into bankruptcy.
But aren’t Obama’s new regulation of CDS good enough?
I have repeatedly argued that they aren’t.
Satyajit Das is a hard core derivatives expert, having worked with them in enough markets and enough vantage points to be very well versed . . .
This is Das’ area, and if he says it’s an issue, it is …
Today, Das wrote an essay  arguing that the new credit default swap regulations not only won’t help stabilize the economy, they might actually help to destabilize it.
Indeed, the only people that are for CDS and the current half-baked regulations are the handful of giant banks that are making a killing from them. Everyone else is against them  (indeed, the economy is the thing “being killed”).
Call your Congress member and demand he or she support Waters’ bill to ban all credit default swaps.
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URLs in this post:
 Washington’s Blog : http://www.georgewashington2.blogspot.com/2009/07/congress-woman-introduces-bill-to-ban.html
 introduced a bill: http://www.bloomberg.com/apps/news?pid=20601087&sid=aKm1E6vW7Brc
 Many top experts: http://www.google.com/cse?cx=partner-pub-9837435702333765%3Awp0o1smf9xk&q=%22credit+default+swaps%22&sa=Search&ie=ISO-8859-1
 nobel prize winning economists: http://www.washingtonsblog.com/2009/03/nobel-economist-ban-credit-default.html
 report: http://blogs.reuters.com/rolfe-winkler/2009/07/17/creditsights-cds-put-recoveries-under-pressure/
 Satyajit Das: http://www.google.com/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&hs=kfx&q=site%3Ageorgewashington2.blogspot.com+%22Satyajit+Das%22&btnG=Search
 says: http://www.nakedcapitalism.com/2009/07/satyajit-das-weighs-in-on-otc.html
 essay: http://www.wilmott.com/blogs/satyajitdas/index.cfm/2009/7/17/OTC-Derivative-Regulation-Proposals--Neat-Plausible-and-Wrong
 against them: http://www.moneymorning.com/2009/07/15/ban-credit-default-swaps-2/
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