Comments on: California treasurer has right idea on CDS http://blogs.reuters.com/breakingviews/2010/04/01/california-treasurer-has-right-idea-on-cds/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: HBC http://blogs.reuters.com/breakingviews/2010/04/01/california-treasurer-has-right-idea-on-cds/comment-page-1/#comment-2100 Fri, 02 Apr 2010 04:10:41 +0000 http://blogs.reuters.com/columns/?p=2784#comment-2100 The State’s job is to prosecute shady financial dealings, not engage in them. Lockyer’s on track to bury CDS, if a little gradually, not to praise them. And so it begins…

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By: breezinthru http://blogs.reuters.com/breakingviews/2010/04/01/california-treasurer-has-right-idea-on-cds/comment-page-1/#comment-2099 Thu, 01 Apr 2010 13:43:25 +0000 http://blogs.reuters.com/columns/?p=2784#comment-2099 A great idea, but by itself it is not enough (as the article mentions).

The regulations governing capital requirements and collateral must be made much tighter than they previously were.

Even so, I think derivatives are a bad idea.

I remember listening to a discussion of derivatives on public radio back when they were first concocted and wondering about the safety of financial instruments that have no intrinsic value, only the value people apply to them based on their expectations of what they might be worth in the future.

It amounts to little more than a naked bet.

As time went by and the concept survived, I could never quite understand how they ever gained acceptance by the financial community.

Even now, after the Great American Debacle, the financial community still embraces them.

Go figure.

There must be something in it for the financial community because their is nothing in it for me except the risk that they might bet really big and be so wrong that I’ll be expected to help them cover the bet.

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By: gramps http://blogs.reuters.com/breakingviews/2010/04/01/california-treasurer-has-right-idea-on-cds/comment-page-1/#comment-2092 Thu, 01 Apr 2010 01:47:15 +0000 http://blogs.reuters.com/columns/?p=2784#comment-2092 Bill Lockyear is the one most well qualified individual in California governance and should have been governor. I suspect he understood the risks of running against “Ahnie” the governator and bowed out. He remains the bright star in California state governance. Bill Lockyear needs to be cloned, quickly…

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By: Story_Burn http://blogs.reuters.com/breakingviews/2010/04/01/california-treasurer-has-right-idea-on-cds/comment-page-1/#comment-2091 Thu, 01 Apr 2010 00:45:40 +0000 http://blogs.reuters.com/columns/?p=2784#comment-2091 default swaps are a cheap form of gambling with much better than Vegas house odds

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