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View Diary: Too Big to Fail versus too small to matter (9 comments)

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  •  Get the words right.... (2+ / 0-)
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    Loge, SingleVoter
    ....lobbied heavily to keep the Collateral Debt Obligations, Mortgage Backed Securities, and Debt Swaps from being regulated.

    I think what you are trying to say is that the derivatives market was not regulated, or very loosely regulated.  That allowed AIG to underwrite Credit Default Swaps (CDS's) with impunity, which is what Paulson and NIxon are talking about.

    The securities you reference in your tirade are regulated.

    And for this:

    nor were forced to disgorge their profits to cover the cost of bailing them out.

    As you should know, the government made money on bailing out the banks.  They might even make money on AIG, who knows.  

    But we all are going to lose a TON of money on Fannie and Freddie - but I guess we don't want to acknowledge that since they were HEAVILY regulated.  

    Not trying to dismiss the wretched behavior of lots of people, but you have more credibility if you get the facts right.

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