BlackyBlack

The Law of One: How Shadow Banks Hijacked the Fed

Bravo - finally someone gets it right. Same people still in charge and the Fed knew (how could they not know) how it worked all along. I disagree that you can review securitization and get the credit boom going again. It worked because it was a way of counterfeiting money. If you put the restrictions you want on it (covered bonds & transparency/accountab... you won't get the volume you need and you increase the transaction costs to prohibitive levels. But at least someone finally gets it and it gets out there. My question: before you can restart securitzn don't you have to deal with the toxic assets you have left from the last try? How are you going to do that - cash them out, rip them up, rename them and sell them to suckers? This right here is the real issue. Until this gets answered time will be asked to stand still.