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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 [1]
Saturday, July 18, 2009

I’m a little late to this story, but last week Congresswoman Maxine Waters introduced a bill [2] 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.

Many top experts [3] – including nobel prize winning economists [4] and numerous other well-known PhD economists – agree.

Indeed, just today, Credit Sights published a report [5] 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.

But don’t listen to me. Satyajit Das [6] is one of the world’s top credit default swap experts. Yves Smith says [7] of Das:

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 [8] 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 [9] (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.

Congress Woman Introduces Bill to Ban All Credit Default Swaps  250509BANNER [10]


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URL to article: http://www.prisonplanet.com/congress-woman-introduces-bill-to-ban-all-credit-default-swaps.html

URLs in this post:

[1] Washington’s Blog : http://www.georgewashington2.blogspot.com/2009/07/congress-woman-introduces-bill-to-ban.html

[2] introduced a bill: http://www.bloomberg.com/apps/news?pid=20601087&sid=aKm1E6vW7Brc

[3] Many top experts: http://www.google.com/cse?cx=partner-pub-9837435702333765%3Awp0o1smf9xk&q=%22credit+default+swaps%22&sa=Search&ie=ISO-8859-1

[4] nobel prize winning economists: http://www.washingtonsblog.com/2009/03/nobel-economist-ban-credit-default.html

[5] report: http://blogs.reuters.com/rolfe-winkler/2009/07/17/creditsights-cds-put-recoveries-under-pressure/

[6] 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

[7] says: http://www.nakedcapitalism.com/2009/07/satyajit-das-weighs-in-on-otc.html

[8] essay: http://www.wilmott.com/blogs/satyajitdas/index.cfm/2009/7/17/OTC-Derivative-Regulation-Proposals--Neat-Plausible-and-Wrong

[9] against them: http://www.moneymorning.com/2009/07/15/ban-credit-default-swaps-2/

[10] Image: http://prisonplanet.tv/signup.html

[11] Naked Credit Default Swaps Are “Like Buying Fire Insurance On Your Neighbor’s House — You Create An Incentive To Burn Down The House”: http://www.prisonplanet.com/naked-credit-default-swaps-are-like-buying-fire-insurance-on-your-neighbor%e2%80%99s-house-%e2%80%94-you-create-an-incentive-to-burn-down-the-house%e2%80%9d.html

[12] Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade: http://www.prisonplanet.com/woman-who-invented-credit-default-swaps-is-one-of-the-key-architects-of-carbon-derivatives-which-would-be-at-the-very-center-of-cap-and-trade.html

[13] Credit Default Swaps Are STILL Dangerous: http://www.prisonplanet.com/credit-default-swaps-are-still-dangerous.html

[14] Risky Credit Default Swaps Linked to Financial Troubles: http://www.prisonplanet.com/risky-credit-default-swaps-linked-to-financial-troubles.html

[15] Stress Tests Prove that Credit Default Swaps Still Pose a Huge Risk to the Economy: http://www.prisonplanet.com/stress-tests-prove-that-credit-default-swaps-still-pose-a-huge-risk-to-the-economy.html

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