It is counter productive to destabilize or destroy a nation through derivatives according to Federal Reserve Chair Ben Bernanke.
Counter productive. Hmmmm, if it was a military weapon I do believe it would be called something else but as long as it's financial....well, ain't thems just fightin' words.
Obviously, using these instruments in a way that intentionally destabilizes a company or a country is -- is counterproductive, and I’m sure the SEC will be looking into that. We’ll certainly be evaluating what we can learn from the activities of the holding companies.
The SEC? Like Madloff? Bernanke said this during testimony before the Senate Banking Committee.
Chris Dodd asks:
Should there be limits on the use of credit default swaps to prevent “runs against governments?
Hmmmm, let's see, now if these were warships instead of derivatives, I do believe Congress is required to declare war...when it comes to weapons of mass destruction such as financial derivatives, we get a meek mouse, oh gee, well, maybe that's not such a good idea.
According to Bernanke testimony the Fed is looking into Goldman Sachs and others use of derivatives with Greece.