{"id":189579,"date":"2010-03-10T10:09:00","date_gmt":"2010-03-10T15:09:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/10\/europe-moves-to-ban-the-naked-cds\/"},"modified":"2010-03-10T10:09:00","modified_gmt":"2010-03-10T15:09:00","slug":"europe-moves-to-ban-the-naked-cds","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/10\/europe-moves-to-ban-the-naked-cds\/","title":{"rendered":"Europe Moves To Ban the Naked CDS"},"content":{"rendered":"<p>Everyone says it&#8217;s like insurance, only with insurance, at least <span style=\"font-weight: bold;\">since 1746<\/span>, it has been illegal to take out insurance on anything that you do not have, &#8220;<a href=\"http:\/\/www.projo.com\/opinion\/contributors\/content\/CT_arthur7_04-07-08_GM9JLMS_v22.39d108d.html\">an interest in the continued existence of the insured property<\/a>,&#8221; but <span style=\"font-weight: bold;\">anyone<\/span> can take out a Credit Default Swap (CDS) on <span style=\"font-weight: bold;\">anything<\/span>.<\/p>\n<p>All they need to do is find a counter-party.<\/p>\n<p>Well, this may be coming to an end, since <a href=\"http:\/\/www.guardian.co.uk\/business\/2010\/mar\/09\/greece-euro-barroso-papandreou-cds\">European regulators are looking at taking steps to forbid the practice<\/a>:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>Jos\u00e9 Manuel Barroso, European commission president, said it was \u201cnot justified\u201d to buy credit default swaps \u201cby unseen interventions on a risk, on a purely speculative basis&#8221;. Photograph: Vincent Kessler\/Reuters<\/p>\n<p>The European commission announced moves today to shore up the euro and ward off market pressure on Greece by considering a ban on complex derivatives allegedly being used to undermine the single currency.<\/p>\n<p>The draconian move suggested by Jos\u00e9 Manuel Barroso, commission president, follows a joint campaign by the German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, for a prompt clampdown on credit default swaps (CDS).<\/p><\/blockquote>\n<p>I&#8217;m sure that Timmy &#8220;Naked CDS is Essential for Price Discovery&#8221; Geithner hates this, but who cares what he thinks:  The only reason he&#8217;s still Secretary of the Treasury is because Barack Obama knows that the Republicans would filibuster his successor out of spite.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Everyone says it&#8217;s like insurance, only with insurance, at least since 1746, it has been illegal to take out insurance on anything that you do not have, &#8220;an interest in the continued existence of the insured property,&#8221; but anyone can take out a Credit Default Swap (CDS) on anything. All they need to do is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004,985],"tags":[],"class_list":["post-189579","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189579"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=189579"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189579\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=189579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=189579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=189579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}