timmay says no to CDS regulation

we dont need no stinkin regulation

that will just mess up innovation

so let me see if i understand

the loans are bundled

then we pay off a ratings agency to give us triple A

then we slice

we assign each slice an interest rate and a payment sequence

the people who buy the highest interest rate slices take the higher risk

but hey , theres no risk because

its all AAA

we hook them up with a counterparty who sells them insurance (cds)

then we bundle the CDS we bought to insure our triple A

we slice that, and borrowed money is "acquired" to buy it (more leverage)

and we sell those slices to “investors” who again get their share of the premiums based upon

risk...which of course there is none, because we hedge these slices too

and of course everything being bought and sold here

every step of the way, makes me, (us) a commission

and is bought with OPM (borrowed money)

and so we are leveraged each step of the way

weeeeee doggie

now you see why these guys deserve their bonuses

cause they are so smart

and all this could be done without being regulated or eveen having to own an underlying security

cause man we ARE NAKED and lovin it

makes the hippies look like amateurs

mock turtle