“Why should banks negotiate or accept regulation or taxation, if they already have access to an unlimited fund?”

The answer is they won’t.

Unless there is a fundamental change in Washingon come Jan 20th, which I am not in a gambling mood about at this point, No dice.

Just say No to the Toxic waste. We didn’t make it and we don’t have to prop it up.

“Banks found themselves with asses they could not sell.”

Didn’t they add lipstick?

So. Did Palin’s pastor “lay hands on her” to “exorcise her”???

John McCain is very old. Did you know he was the test pilot who crashed Leonardo Da Vinci’s first airplane?

If I don’t have this right, please someone, correct me.

Thank you for the clip.

I hope that group of economists also sent their recommendations to Senator Dodd. If Congress does not heed their advice then my G/G grandchildren, not yet born, will be paying for the debacle.

I am fascinated by Paulson’s constant use of his hands when speaking. I’m sure many can imagine what I was thinking it was he was “sculpting”.

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My argument is that ARM mortgages confuse price-setting and get mixed in with other assets in CDOs (which is bad when one mortgage defaults and throws off the value of the whole) and that CDS insurance policies by and for parties who don’t own a CDO is strange (especially when they insure for multiple times the asset value) and risky when the insurer isn’t an insurance company and doesn’t have sufficient resources to pay off the policies.

Fix those problems by either doing away with ARM mortgages (convert ‘em to fixed-rate) or set a maximum yearly rate increase at x% [preferably small like 2%]), don’t let mortgages be bound together in CDOs and regulate the heck out of CDS insurers or ban them all together.

This should help people afford their mortgages, value those when they’re being traded and not give someone incentive to blow them up for the insurance money.

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Add, on top of that, if you wish compensation limitations, but that’s not fundamental and crucial!