> RoMunn wrote: > You are off in la-la land if you think the government created derivatives. >
I guess "la-la land" is your pet term for the US of A. The following was authored by Phil Gramm, McCain's econ adviser, and he promised it would create a "new era" for the financial services industry. It did. ----------- The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts. The act has been cited as a public-policy decision significantly contributing to Enron's bankruptcy in 2001 and the much broader liquidity crisis of September 2008 that led to the bankruptcy filing of Lehman Brothers and emergency Federal Reserve Bank loans to American International Group[1] and to the creation of the U.S. Emergency Economic Stabilization fund. Read the Act here: http://www.cftc.gov/stellent/groups/public/@lrrulesandstatutoryauthority/documents/file/ogchr5660.pdf ----------- I don't blame you for not knowing this because it's esoteric and boring, but basically what this CFMA did was to eliminate the regulatory distance between commercial banks and investment banks. This created a backdoor into the commodities markets which allowed speculators to make bets on commodity trades and at the same time avoid the regulatory limits that historically would've been applied. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:285841 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
