And this one won't cost us a dime:
SEC Chairman Cox had the right idea, to regulate the CDS market. He could have pushed for a market holiday until this regulation ... and an investigation ... of this market could be accomplished.
This would cost the taxpayer nothing and would relieve some pressure on the bonds that are the basis of this market.
I have nothing really to add to this. The whole post is excellent.
I've been studying this whole thing obsessively over the last few days. I don't completely understand it, but I'm starting to figure out what I don't know. Like, why a taxpayer bailout? Why not have the Fed do it?
Would this be ... because the Fed balance sheet has been contaminated by toxic waste taken as collateral in the various prior bailouts and short term facilities? Is the Federal Reserve another insolvent bank?
Inquiring minds would like to know...
Indeed.