Friday, March 20, 2009

Rep. Brad Sherman - Not just bonus caps but salary caps…

And there’s CNBC defending the actions of Wall Street. They have bought into the CDS end of the world mantra. Not that I'm in favor of salary caps, what I'm in favor of is not allowing uncontolled debt and derivative expansion.

How’s this? Freeze all CDS until an exchange can be made to handle the FEW proper uses of them. If freezing the CDS knocks your institution to the ground, GREAT, then we’ll know who is swimming naked in the toxic ocean. Those who aren’t can pick up the pieces. GS and JPM fail? TOOO BAD, there’s our opening to a better system moving forward. Will it happen? Of course not in a deliberate manner, but it will most likely happen sooner or later regardless.