that 700bln package is BS.
a far more radical approach is needed, could look like this:
- declare all existing CDS void, by law
- force ALL banks, by law, to start making markets in ABS / CDOs from, e.g. Oct 15 00:00, with fixed spread rules and quote sizes according to the size of the bank
(optional: on a newly created exchange)
- urge G8 countries to do the same
i know this sounds like nonsense.
all the current "solutions" floating around are nonsense though.
a far more radical approach is needed, could look like this:
- declare all existing CDS void, by law
- force ALL banks, by law, to start making markets in ABS / CDOs from, e.g. Oct 15 00:00, with fixed spread rules and quote sizes according to the size of the bank
(optional: on a newly created exchange)
- urge G8 countries to do the same
i know this sounds like nonsense.
all the current "solutions" floating around are nonsense though.