investing57

Stupid Is as Stupid Does: The SEC and CFTC Legalize Electronic 'Gambling'

puts and calls are derivative instruments that enjoy tremendous volume and liquidity precisely because they are bought and sold in an open market with margin regulations and backing by the OCC...CDS have value to the market place, but they need to be accounted for and margined correctly and have counter party risk backed by a 3rd party organization.
Don't throw out the baby with the bathwater. CDOs are neither good nor bad simply a risk transferrence tool