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Originally Posted by mykalberta
Its sweet justice cause this is the guy who was leading the charge for less regulation. I could try to be sorry for the house of Morgan, but it would be an outright lie.
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If the best and brightest can explode themselves in the $650 TRILLION derivatives industry, then it can happen to anyone. And $2 billion here or there isn't difficult to make or lose if you're leveraging with OPM (other peoples' money).
You saw how vague the very blurry line between legitimate hedging and speculating really is in this particular situation. Where does one side start and the other one end?
I'm off and on with the very, very left leaning Paul Krugman, nobel prize winning economist and New York Times commentator, but I do agree with him today on "Why We Regulate."
http://www.nytimes.com/2012/05/14/op...e.html?_r=1&hp
You just can't have financial institutions using depositor's money in speculative leverage in an unregulated industry. That's the minimum price financial instutions have to pay to exist.
Cowperson