Oct. 30, 2022
October 30, 2022 This is a correction to the comment I just submitted, in which I focused on securities lending instead of swaps. Although the rest of what I said still more than applies, with respect to swaps specifically, the whole shadow financial system is what caused a series of bad bets in and up to 2007 into the Great Recession. The amplification of the effects of loss of value through the derivatives markets, their ability to move the market itself, and the ability of financial leviathans to obscure their investment/cultivation/extraction activity should have already been rectified Instead, what we have is a problem equal to or greater than the Great Depression staring us in the face, because we were unable to learn our lesson then. Well, now is better than never. Although it may not save us from the immediately looming crises and disasters, adding a rule to ensure the reporting and sharing of swap data will at least allow regulators to foresee highly risky activity long before it becomes systemically problematic, as well as allowing \"retail\" investors to see what the institutions we entrust our money to really think is worth betting on -- as opposed to what their minions tell us are the right moves to better ourselves. Move to enact a fairer playing field. Move to bring swaps into the light.