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View Diary: Hope And Cave: SEC and CFTC Fold on Regulating "Financial Weapons Of Mass Destruction" (145 comments)

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  •  Commodity future trading was successfully used.... (5+ / 0-)

    .....for over a century, in order to:

    reduce business risk .

    The Chicago Merchantile (Commodity) Exchange opened in the year 1898.

    For for OVER A CENTURY, commodities future trading was used "to reduce business risk", without collapsing the world's economy.

    Then in the year 2000, a bipartisan political partnership with Wall Street removed nearly all regulatory oversight of that industry. Just eight years later, we had the worst economic meltdown since the Great Depression.

    The fact that Robert Rubin, Larry Summers and Tim Geithner were chosen as the primary architects of the Obama Administration's economic policies, indicated to many of us that the bipartisan political partnership with Wall Street would continue.

    Today's news is another confirmation of that very sad fact.

    Like it or not, it absolutely is the case that swaps and other derivatives are often used responsibly, not to gamble, but to reduce business risk.....
    ....and reinstating the regulatory regime that was in place, prior to the 2000 CFMA, would not significantly change that aspect of derivatives trading.

    While I don't hold Obama in high esteem, that doesn't mean I would say he's the Devil Incarnate and the lessor of evils. He is merely the lessee of evils.

    by xynz on Fri Apr 20, 2012 at 02:20:55 PM PDT

    [ Parent ]

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