GOP members demand words "Wall Street" not be in financial crisis report.

[richardhutnik]

Kasz216 said:

ChichiriMuyo said:

But there was absolutely no way for them to fail serperately because of credit default swaps. 

Huh?  Credit Default swaps exist specifically FOR diversifying the risk to make it less risky.

Instead of having 5 loans in Las Vegas, you have one in LV, one in Chi, 1 in NY etc.

In an regular market, Credit Default Swaps makes things safer.

In regular markets, why does one need to have credit default swaps?  Looks to me, what you with what you suggest is form interconnections that make the downside of risk far larger, when the abnormal happens.  The problem is with irregular markets taking down the entire financial industry and causing the economy to go to a screeching halt as it had been.  Do you have answers for the large number of working people who lost their jobs, and have a hard time standing a chance getting work back, because of "well, in normal times, it is safer"?  Having incremental failing in normal times enables people to be able to find work.  Cascading failure that happens when you interconnect things, does not.