lindlou

Large OTC Markets + Excessive Leverage + FVA = Systemic Risk

"How does a concept like FVA, which depends upon a certain degree of good faith by all market participants, operate in such a deliberately dishonest environment?"
I think this quote from the article sums it all up. When corruption reaches this level the damage is irrepairable.

The Credit Bubble: Deregulation Gone Wild

I think it's time that we called this what it really is--criminal behavior. I am sick of hearing debates about whether something was a "moral hazard" and if it was "ethically correct". The way to stop this is to go all of the way back, reinstate Glass-Steagall and all of the other depression-era regulations and start from there. I think the possibility of a long prison sentence might be the only thing that will change the behavior of some of these corporate criminals.