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View Diary: Back from the grave: financial deregulation lives again (101 comments)

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  •  The Tens of Trillions of Derivative Holdings (11+ / 0-)

    By certain banks is their blackmail policy against the American people. J.P. Morgan comes to mind. If they fail, all of the money in the world is instantly valueless.

    "I'll believe that corporations are people when I see Rick Perry execute one."

    by bink on Tue Mar 26, 2013 at 01:11:41 PM PDT

    •  I don't believe that they (2+ / 0-)
      Recommended by:
      Jaimas, Odysseus

      would be able to crash the economy if the government were wiling to take action to stop it from happening. There's no reason the Fed can't be conscripted to do public lending in the face of a bank meltdown. The market is pretty much completely decoupled from the real world at this point outside of 401ks and pensions. Just give government guarantees on those at a certain level.

      It's absurd that people can't see how simple these problems are to solve, the blinders of neo-liberalism are killing us as is the idea that there are no alternatives.

      If debt were a moral issue then, lacking morals, corporations could never be in debt.

      by AoT on Tue Mar 26, 2013 at 02:27:00 PM PDT

      [ Parent ]

      •  Yeah (3+ / 0-)
        Recommended by:
        gjohnsit, Jaimas, 3goldens

        But, really, would it be possible to unwind trades equalling something like $75 trillion in the case of J.P. Morgan if it suffered a catastrophic failure? How exactly would that work?

        "I'll believe that corporations are people when I see Rick Perry execute one."

        by bink on Tue Mar 26, 2013 at 02:37:06 PM PDT

        [ Parent ]

        •  I couldn't tell you exactly how it would work (2+ / 0-)
          Recommended by:
          Jaimas, Odysseus

          I can tell you that what should happen is that the organizations that made those trades should take a hit. They should lose their investment, every one of them. We need banks for exactly two things, savings and loans, everything else is a sham and we can do without it.

          If debt were a moral issue then, lacking morals, corporations could never be in debt.

          by AoT on Tue Mar 26, 2013 at 02:43:18 PM PDT

          [ Parent ]

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