After a brief break, prohibition is back. if there is one thing that has worked time and time again in this country, it's banning people from selling certain goods and services. Where would the alcohol industry be today without the prohibition era? Declaring marijuana illegal has successfully made it one of the West Coast's largest cash crops to the point where California is toying around with the idea of legalizing it to help stop the fiscal bleeding. And now Joe Stiglitz would like to add derivatives to that distinguished list.
"We will have another armed robbery unless we prevent the banks, the banks that are too big to fail," Stiglitz said. "We should say that if you're too big to fail then you are too big to be. They need more restrictions, such as no derivative trading."
Keep it coming Joe. With enough vitriol who knows, maybe there's a chance derivatives could actually wind up on the extinct species list. Assuming they do, wind up the egg timer and wait. Because if there is one thing that prohibition has proven, it's that the laws of physics don't apply. For every prohibition action, there tends to be an (un)equal and opposite reaction.
Stiglitz Says Banks Should Be Banned From CDS Trading [Bloomberg]