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Hide Your Nakedness

Long or Short Capital has penned a missive on Chairman Peterson's anti-CDS legislation that bears reading.

It's about time that someone put together a way to stop the CDS market cold in its tracks. The instrument's ability to provide hedging for companies' debt, improved liquidity in names, and more accurate information about the health of issuers is not only dangerous, but it's overtly capitalistic (they might as well be called Credit Default Ronald Reagans), which we now know to be a mistake. A healthy economy doesn't need an unfettered free market system -- what it needs is a regulated command economy that ensures that houses (and everything else) are always affordable, especially for people that can't afford them and that politicians are always in control of all economic and financial processess.
This particular zimbabwenomic reform comes from the chairman of one the most progressive committees in the house, and hopefully he and fellow zimbabwenomicist Barney Frank can push forward appropriate regulation of all markets, specifically, regulation that will prevent them from going down.

Between this and a repeat of the Hawley-Smoot legislation, we are in for good times over the next decade.