Obama's Latest Socialism: 'Regulating' 'Derivatives' 'To Prevent' 'Global Collapse'
Sure, Barack Obama changed his mind about releasing the very scary photos of widespread medieval U.S. war crimes everywhere, but Robert Gibbs cut off that leftist hippie firestorm right quick when he stole a reporter's telephone and everyone got distracted and forgot about war and stuff. What's the other terrible thing happening in the world now? Oh yes, money, and how we lost all of it after a few companies had to put up collateral on all those credit default swaps they made in secret, but then they didn't have any reserves whatsoever, because saving is gay. Well the Treasury is finally releasing a plan to introduce basic, very basic regulations to the derivatives market. Why does the government hate capitalism?
There are two key things here, things that should not be controversial in any financial market of this magnitude: (1) derivatives must be traded through regulated central clearinghouses, not in SECRET, and (2) some percentage of reserves must be maintained to cover for losses, just in case, for example, "housing prices go down."
As our balanced Washington Post newspaper tells us, these impositions are considered very Controversial by the banks, which are just trying to represent the interests of Main Street against this Muslin government:
In turn, the clearinghouses would require traders to maintain enough money in reserve so they could cover losses in any investments gone bad. These so-called margin requirements have been a hotly debated issue between the government and private traders because it curbs their profits.
"These so-called margin requirements." Jesus.
Not that it will matter.
Some analysts recently have been warn of loopholes in the administration's plan, which officials have hinted at in recent months. The proposal would allow a limited number of highly specialized derivatives to trade without going through a clearinghouse. Some analysts warn that this exception might lead derivatives traders to create increasingly complex derivatives to avoid regulation.
At what point does a civilized society stop allowing "derivatives traders to create increasingly complex derivatives to avoid regulation" and start scorching them with blue fireballs, on live television, on Twitter?