Note: this post is not an endorsement of Ralph Nader for President.
As usual, Ralph Nader has a way of succinctly and accurately summing up a vexing problem -- this time the financial crisis. In the on-line article referenced below Mr. Nader offers a quick overview of the history of the derivatives market. (You may also click on the title above.) Ralph Nader is right that the current crisis was foreseeable and was foreseen.
My only real point of disagreement with Nader is that instead of regulating the derivatives market, the market should be shut down. (For an explanation of derivatives follow the second link below. I will continue to work to get a good definition of derivatives.) My research indicates that the amount of money involved in these highly speculative financial "instruments" is more than is available to the governments of the world to "buy them out." The derivatives market, as others including Ralph Nader have said, is a legalized casino. As such it is a parasite on the world body politic. Any efforts to stem the tide of this financial disaster without dealing with this sophisticated form of gambling will fail. Mr. Nader says it all very well.
(The author does not endorse Ralph Nader for President by making this post.)
http://www.votenader.org/blog/2008/10/10/in-public-interest-derivatives-casino/
Derivatives explained:
http://www.leomelamed.com/essays/08-DerivativesDefinedPekingUniversity.htm
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