In reading through the commentary over the weekend it appears to me that John Mauldin probably has the most effective suggestions.Â I no doubt agree to some of his ideas because I was a trader on the Chicago Mercantile Exchange for many years and believe in the total transparency of open exchanges.Â The unregulated derivatives markets have been a ticking time bomb since their invention. Mauldin suggests that: 1) Â FASB 157 be amended this week. It is the rule that requires mark to market of the credit default swaps, and 2) move credit default swaps to a regulated exchange whereÂ by definition they would be marked to market in a free market pricing.Â Investment banks and hedge funds would scream at this free market solution but it is the way to go,
Is some ways this has an element of WMD’s Â and Iraq.Â Apparently congress is being scared and pushed into a no oversight plan by Paulson and Bernanke.Â Do they, Paulson and Bernanke,Â really know what is going on and can we believe them, or is this just another effort by this Administration to push on the American peopleÂ another $ 700 billion of debt to add to the Iraq $ 700 billion debt?Â I would not be surprised that those of Congress who vote for this deal will eventually pay the same price as those who voted for Iraq.
The market ranges and swingpoints we mentioned on Friday still hold.
8:27 AM CDTÂ