Derivative Monster: Alive and Kicking Despite Reforms
Posted on June 28, 2010 at 08:24 AM EDT
Anyone who thinks the new financial reform law will save us from the next debt disaster must be dreaming. Here are the facts … Fact: The U.S. derivatives that helped cause the last debt crisis are merely being shifted around like deck chairs on the Titanic. Fact: Nothing whatsoever is being done about the derivatives monster overseas, which is more than TWICE as big. Fact: Most important, despite months of debate and thousands of pages of legislation, the two biggest risk-mongers of all — the Treasury and the Fed — didn’t even get a slap on the wrist. They got more power. Little has been done to address the huge derivatives…