March 16, 2009
Credit Default Swaps should immediately be outlawed because they are nothing more than legalized "side bet" gambling. To make matters worse, the American Taxpayers are being hoodwinked into paying off Wall Street's gambling losses (example, AIG). Approximately 90 years ago instruments like Credit Default Swaps were sold in "bucket shops" and were determined to be illegal gambling. And then Congress made it legal gambling again with the Commodity Futures Modernization Act of 2000, which removed derivatives and credit default swaps from federal oversight and preempted the states from enforcing existing gambling and bucket shop laws against Wall Street. If Credit Default Swaps are allowed to remain in existence, then maybe you should move Wall Street to Las Vegas. Whatever you do, it is a total and unspeakable disgrace (fraud) to establish an "untransparent" system whereby Wall Street's gambling losses are subsequently and secretly paid by the American Taxpayer.