| reply to amigo_boy
Re: Unemployment and Wall Street I think that the clearinghouse exchange is a good idea if it is implemented properly. I could see the exchange concentrating risk though. Lehman sort of acted like that clearinghouse and when it went under, the only people directly were those that used Lehman as an intermediary or counterparty, the trouble was that so many people did. This exchange should just be a broker and not have any 'skin' in the game like Lehman did.
I totally agree with your goal of transparency in the sense that it should increase investor confidence in company's books. It is frustrating that companies can use derivatives to play tricks with their balance sheets, that is deception. |
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| said by hoyleysox:This exchange should just be a broker and not have any 'skin' in the game like Lehman did. I was talking about an exchange like CBOT. An exchange like the NYSE and NASDAQ, but they clear futures and stock options. Regulated by the CFTC.
It's not like a private exchange, which more institutions than Lehman engaged in. What you're worried about is the kind of exchange we have today with non-regulation. Investment banks and hedge funds operating their own exchange, using their book.
Mark |
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