Hillarysworld

Sanders · Diamond

(10/28/09) "A Call to Regulate OTC Derivates Market - Then and Now" (Sanders RTN)

Alex · Diamond

Sanders wrote:

Brooksley Born, the then (1998) Chairman of Commodity Futures Trading Commission (CFTC) during Clinton Administration, [she was appointed by Pres.Bill Clinton], warned the Representatives and the then Treasury leaders that uncontrolled unregulated derivatives were a nightmare in the making.

http://roadtonovember.com/forum/viewtopic.php?f=6&t=1580

It was also a lack of regulation that brought on the mortgage crisis. My husband and I had to jump through about a million hoops to get our mortgage, but then the requirements changed and voila! foreclosures galore, not for us, but for many unfortunate people. disbelief

Sanders · Diamond

For sure!

A lack of regulation contributed to the mortgage crisis.

What happened was those bad mortgage assets became the core base for a lot of DERIVATIVES. Derivatives as assets were meant to cover (hedge) risks.. but when they were orchestrated to cover bad assets to that extent, and then more derivatives were created on top of those, they became toxic assets. Trading them over-the-counter makes them reachable to speculative dealings without involvement of a regulated trading house. When such speculation happens with little to no knowledge of the derivative instrument and absolutely nothing about the underlying core asset, it is a huge issue. THIS is what happened.

Brooksley Born gave a thorough testimony on this in 1998 and repeated her assertive plea/warning this year when she was awarded JFK Courage award for for her courageous 1998 testimony. I hope the administration pays attention to this.

There are many special interests driving against regulation of the OTC Derivatives market. Unless there is huge push for this, nothing will happen. And where will that push come from? That would have to be from the citizens... But the citizens are not aware of this.

As of the time I made the post today at RTN, only 700 people had seen the YouTube video of Brooksley Born's award acceptance speech from May - it was posted in August. There is a dire need to spread the word.

Never forget.. this is a highly accomplished professional female who spoke up professionally and in the best interest of us the people - the taxpayers - when she gave her testimony. And, she turned out to be spot on. And, she has repeated her warning in May.. and still, nothing has been done.

It is for us to amplify her voice.

-- Edited by Sanders on Wednesday 28th of October 2009 10:25:26 PM

Sanders · Diamond

Please be sure to visit this thread. It has a lot of research and I have transcribed her speech at the JFK Courage Award ceremony.

http://roadtonovember.com/forum/viewtopic.php?f=6&t=1580

-- Edited by Sanders on Friday 30th of October 2009 01:12:59 PM

Lara · gold

I'm not a fan of Rolling Stone magazine since they went all antii-HC during the election, but I got this article link from The Confluence that's a good read. The article talks about the role of Goldman Sachs in the internet & mortgage crisis, as well as upcoming economic bubbles.

I thought it was also an important read since it discusses cap and trade and how bankers pushed for that legislation. Al Gore doesn't come out looking so great.

"The Great American Bubble Machine"

http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine