peter schiff tells it like it is, page-10

Excellent point Senoj. However I am sure regulation will follow soon after the plan is passed through congress.

But can I put something to my HC counterparts. I put it to you, that events like these are inevitable.

The 1980s saw the birth of Michael Milken's junk bond market. Every company was 'in play' and we saw the Nabsico Brands and RJ Reynolds merger followed by KKR's purchase of the new RJR Nabisco, all with Drexel's money-machine-Milken debt. The stock market crashed, jobs were lost. Milken made 3 billion dollars. The SEC'S 1 billion dollar fine didn't even make a dent in Milken's personal wealth.

Swift regulation followed to restrict the creation of exotic financial instruments. And here we are, having come full circle 20 years later with the invention of the CDO. Sure, regulation will follow, and we will be bailed out just like we were in the Savings & Loans crisis.

My point is that it is impossible to supress the determination and drive of the 24-year-old Harvard/Wharton/Stern business graduates who are determined to make a fast buck at the trading desks of the major firms. Although the CDO will die along with other exotic instruments, I put it to you that as sure as the sun will rise in the morning, the young guns will devise another way to make billions before the age of 30, to the detriment of the wider market. Because this is what has happened this time. Again. Jerome Kiervel was merely one of many, incurring losses of 6 billion dollars in his own trading positons at BNP (or SocGec, can't remember). And he was a loser... for every loser there is one winner.

In the words of KKR's Henry Kravis in '87, 'Wall Sreet is afraid now. But Wall Street has a bad memory.'

And boy was he right.