Why are the candidates not discussing this monster problem?

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What Created This Monster?
By ND. SCHWARTZ & J CRESWELL
March 23, 08
In a nutshell, financial institutions became deregulated thanks to both Clinton and Bush administrations. This led to a series of new products called derivatives, that were very lucrative for Wall street firms. A derivative is like an insurance. If a bank buys a risky bond with a high rate of return, it can sell the risk as a derivative. So the risk is actually spread worldwide.
This business is so poorly regulated that these positions do not even appear on the banks balance sheets...and the entire industry is worth trillions of dollars. If these trillions go up in smoke, the loss is eventually carried by everyone, you and I...
This problem dwarfs the problem with sub prime mortgages.
Even treasury secretary, Hank Paulson, is now talking regulation.
See:
http://www.nytimes.com/2008/03/23/business/23how.html?pagewanted=2&_r=1&sq=financial%20instruments&st=nyt&scp=5&adxnnlx=1206678633-NnbUTsn/8hKPKL9KbjmB%20Q
Oh, I forgot: this is what did Bear Stearns in...and the government bailout of Bear Stearns was done courtesy of our tax dollars. That is why we should be paying attention.
 
the cat is out the bag. one excuse you are going to hear a lot from here on out why the USA can't do some things that are clearly in our best interest is that other countries will be mad at us...we have allowed ourselves to be too dependent on other countries approving what we do. This means the american people themselves have less control over what our government does as we can elect new politicians but they will say their hands have been tied by trade agreements and financial agreements worldwide.

But I agree totally with you that one of the main problems is people making money from nothing at all by just literally gambling on speculation of price movement. This is one key reason why the price of oil is so high.

The candidates are not discussing it for 2 reasons: 1) its a fairly complicated issue for a society that likes its politics to be at bumber sticker level. and 2) In the USA its not considered good etiquette to make a frontal attack on people with a lot of money and power even when you are a democrat. The republicans actually are glad those people are making money like that and do not want to regulate or restrict profit making.
 
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