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Thank you.

Any chance there are any companies that didn't engage in this mutual suicide pact (oh sorry, meant "sound business practice")? Are those are the companies you invested in because they did recognize the risk premiums were too low...?

A cascade would cause those insurance contracts to be triggered. Now I understand the WMD comments. At least the minefield would be cleared.

But it does seem to me that by not regulating new contracts *now* all we are doing is adding to the (switching metaphors) the fuel load the wildfire that's coming will have.

What's taking so long to get a transparent exchange for CDS? The lack of traceability? Why can't they start from a date and say henceforth all CDS sold will be subject to insurance regulations using XYZ mechanisms to ensure transparency? I understand that would do nothing for the current problem, but at least it would limit future additions.
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