The average American understands economic hardship, high unemployment and recent graduates who have paid for a top-notch education and cannot get employed. Retirees understand the impact of a stock market that stole their retirement through depleted 401K balances, with no financial advisor telling them to stay on the side-lines with their hard earned retirement dollars, until the derivative debacle was cleaned-up.
Average Americans now understand this was all avoidable. AIG and Goldman could have acted responsibly for the good of the U.S. economic system. Lehman Brothers could have acted responsibly for the good of the U.S. banking and economic system. They chose not to.
Here are the raw facts of what self-regulation in the OTC derivative markets looks like. Read this report of the greed-gone wild by the “bankers” at Lehman.
/files/6/7/3/9/5/268450-259376/Finance_Overhaul_Casts_Shadow_on_Plains___WSJ_com.pdf”>The Wall Street Journal reported in July on the harm the derivatives reform will do the the farmers in the bread-basket, Nebraska.
/files/6/7/3/9/5/268450-259376/NAWG_on_Speculation.pdf”>National Association of Wheat Growers specifically asked for more control of OTC market speculators, because the rampant speculation was destroying the effectiveness of their hedges.
The Wall Street Journal and The New York Times have a responsibility to disclose the facts on this issue, not opinions by lobbyists that are seeking to minimize any regulation for the main derivative banks to keep their predatory, unethical profit stream a float.
The Derivative Project sent a counter point to The New York Times on how there are multiple sides and reasons that farmers requested control of rampant speculation in the OTC derivatives markets. The NYT did not publish this Letter.