Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

University of San Diego law professor Frank Partnoy, whose 1997 book, F.I.A.S.C.O., originally exposed the danger of derivatives, this morning (Sept. 27) offers a practical and equitable solution to the current mess in an op-ed in the New York Times. Partnoy says that under the present plan, the government would spend much or all of the $700 billion it seeks to buy deliberately-complex mortgage-based derivatives, thus bailing out financial institutions, and thus roiling Americans who can't see rescuing speculators with taxpayer funds. What Congress should do is to limit the definition of troubled assets it will buy to actual mortgage loans. Such a move "will indirectly support the mortgage-based derivatives that have caused widespread losses at banks. But it will do so without favoring banks at the expense of homeowners," writes Partnoy. In pushing a plan to buy the derivatives, politicians "are aiming at the wrong target. Buying derivatives whose value is linked to home mortgage loans will save banks some money, but it won't resolve the underlying difficulties in the mortgage markets." If the government bought only mortgage loans, "the rest of the market will follow." Why don't the politicians take such a sensible path? Partnoy does not address the reason. I will give my opinion. The politicians of both parties are owned by lobbyists from the financial services industry.

Comments
12

Why don't the politicians take such a sensible path? Partnoy does not address the reason. I will give my opinion. The politicians of both parties are owned by lobbyists from the financial services industry.

We have a winner.

Sept. 27, 2008

Response to post #1: The big money controls Washington, we well as state legislatures and local political bodies. (Just look at San Diego.) If this Wall Street bailout (and let's face it, we will get one) proves anything, it's this truth: money rules. The bailout is exploding the myths of free markets and competition, and also exposing the myth of democracy. Best, Don Bauder

Sept. 27, 2008

Bailing out derivatives would be outrageous criminal negligence, to say the least, anyone in the government who does must be arrested and sent to Gitmo immediately for betrayal of every American citizen.

As you documented, $1,140,000,000,000,000 in derivatives are “financial weapons of mass destruction.” They are Osama bin Laden class terrorism.

Sept. 27, 2008

Response to post #3: It was Buffett who called derivatives WMDs. Best, Don Bauder

Sept. 27, 2008

Response to post #4:

Nevertheless, the brain-dead congressional democrats are doing everything they can to lose their re-elections by selling out American taxpayers and the American middle class to Wall/Main Street corruption and greed that the republicans enabled in the first place.

Only the democratic party could melt itself down.

Sept. 28, 2008

Response to post #5: Following McCain's goofy antics last week and the debate, the Democrats are pulling ahead. I can't comment yet on the bailout package, because I haven't seen it. I have only seen the report that there is a tentative agreement. Best, Don Bauder

Sept. 28, 2008

Response to post #6:

The bailout had damn well better be in favor of all taxpayers best interests or the dems will most certainly prove once again that, whereas the republicans are too corrupt to govern, the democrats are too brain-dead stupid to govern.

Sixteen years of Clinton and Bush have damn near done us in, and the future for all Americans is most certainly in grave doubt due to Washington corruption and incompetence.

While Senators Feinstein, Boxer and Congresswoman Susan Davis have proven the Good Old Girls are the same as Good Old Boys.

Sept. 28, 2008

Opposition to the bail out was running 20-1 against it.

Yet Congress is saying today that they have reached a deal on a bailout.

Now if that does not tell everyone how screwed up our system has become then I don't know what will. 20-1, with large scale protests on Wall Street on Frida evening.

The ONLY people who want the bailout are the foriegn debt holders and Big Business/Wall Street.

Our Country is messed up.

Sept. 28, 2008

Response to post #7: The bailout by its very nature can't be either fair or acceptable to taxpayers. Best, Don Bauder

Sept. 28, 2008

Resoonse to post #8: Money talks, but why must it nauseate? Best, Don Bauder

Sept. 28, 2008

Response to post #8:

Today shall most certainly be another more than interesting day in American history.

Neither McCain nor Obama are taking a definitive stand on the latest plan, thus neither candidate for POTUS has begun to show true leadership that we need most today.

Even the rest of the world is wondering if Americans can save ourselves any longer.

Will the corrupt continue to protect the interests of the corrupt?

Will the best interests of the people be served at last?

Stay tuned.

Sept. 29, 2008

Response to post #8: In the last couple of decades, Wall Street has owned Congress. But constituents are screaming. I agree: it will be an interesting day. Best, Don Bauder

Sept. 29, 2008

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer News — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close