Regulating toxic derivatives like drugs

[Joanne98]

Should some complex financial instruments be outlawed by regulators in the same way that the US Food and Drug Administration refuses approval for some drugs?

Bill Donaldson, the former chairman of the Securities and Exchange Commission, thinks the idea should at least be considered as part of the reform of financial regulation in the US.

He mentioned this during a discussion on regulatory reform that I moderated yesterday at the Council on Foreign Relations in New York. The suggestion was not supported by the other panel members but it was certainly striking.

This is what he said:

We are victims of derivatives, the infamous default swap securities and so forth. It brings into question just how we go about regulating. Should there be a Food and Drug Administration approach to toxic instruments? Should certain sorts of instruments being outlawed?

Continued>>.
http://blogs.ft.com/gapperblog/2008/11/regulating-toxic-derivatives-like-drugs/

[Shishio]

1. Here's a different approach...

Education. There is no reason why we can not inform our public as to the way any and all points of society works, up to and including AND especially monetary policy as a whole, and even on the personal area. If our media wasn't complacent (by design) our public would be informed on many more issues that are facing them. The schools could shoulder most of the responsibility of education and should do so at an early stage. We use money everyday wether we physically exchange it or not but most people do not understand how their money works or what it really is.

I think more regulation, though well intended, will lead to an even bigger nanny state, and will never fully protect consumers from the ever evolving scams and pitfalls that would find ways around the regulations. Which would just lead to more regulations and restrictions, but never solve the problem... only loosely and temporarily mend the perpetual effects.

[Joanne98]

2. You're right. The only answer is another French Revolution!

The French beheaded whole families at a time for years until all the scum were dead. I'd rather do that anyway.

[Shishio]

3. I prefer peace.

Simply saying no to power, in large enough numbers, could achieve the same effect with alot less blood and burdenless necks.

[Joanne98]

5. I gave up hope for that a long time ago. Off with their heads!

[HysteryDiagnosis]

4. Ghandi evicted the Brits without ever raising a hand... and they

were pretty damn insistent on staying. Go figure.

[Joanne98]

6. How do we evict the bankers? They would just screw us from another country.

[Shishio]

8. Restore sound money

End this fraudlent monetary system and return to money that's value is not controlled by an unelected shadow entity. When we used gold and silver or commodity backed money we were able to self regulate. Now we are at the will of the unseen. And being devistated by the inflationary policies they are forcing on us. Taxation without representation.

[Shishio]

7. Ghandi rawks

It's all about rasing awarness.