Comments on: Volcker speaks http://www.buytherumorsellthefact.com/2008/09/26/volcker-speaks/ Just another WordPress weblog Thu, 02 Feb 2012 00:29:48 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Anonymous http://www.buytherumorsellthefact.com/2008/09/26/volcker-speaks/comment-page-1/#comment-41 Anonymous Wed, 01 Oct 2008 14:00:43 +0000 http://buytherumorsellthefact.com/2008/09/26/volcker-speaks/#comment-41 Wish I had $600 billion to lose. Wish I had $600 billion to lose.

]]> By: Jeff http://www.buytherumorsellthefact.com/2008/09/26/volcker-speaks/comment-page-1/#comment-40 Jeff Sat, 27 Sep 2008 17:27:47 +0000 http://buytherumorsellthefact.com/2008/09/26/volcker-speaks/#comment-40 I find it interesting that Volcker is commenting on structure of the marketplace, not necessarily a failure in regulation. Would this crisis have been averted if all the CDO's were run through a clearinghouse entity like the Chicago Mercantile Exchange's? Then they get oversight from not only the laizzez-faire OTC regulation, but they get scrutiny from the CFTC as well. It also seems to me that the bail out should be targeted. The credit market is the problem. Get the TED spread down to "normal" levels and the free market will take care of the rest. I agree with Volcker that compensation to execs taking tax dollars in a bail out should be limited. But bear in mind, Dick Fuld lost over 600 million in the Lehman breakdown. The free market took care of it. He is sellling some of his valuable art collection to raise cash. I find it interesting that Volcker is commenting on structure of the marketplace, not necessarily a failure in regulation.

Would this crisis have been averted if all the CDO’s were run through a clearinghouse entity like the Chicago Mercantile Exchange’s? Then they get oversight from not only the laizzez-faire OTC regulation, but they get scrutiny from the CFTC as well.

It also seems to me that the bail out should be targeted. The credit market is the problem. Get the TED spread down to “normal” levels and the free market will take care of the rest.

I agree with Volcker that compensation to execs taking tax dollars in a bail out should be limited. But bear in mind, Dick Fuld lost over 600 million in the Lehman breakdown. The free market took care of it. He is sellling some of his valuable art collection to raise cash.

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