Karl Denninger

1. Force all off-balance sheet "assets" back onto the balance sheet, and force the valuation models and identification of individual assets out of Level 3 and into 10Qs and 10Ks. Do it now.

2. Force all OTC derivatives onto a regulated exchange similar to that used by listed options in the equity markets. This permanently defuses the derivatives time bomb. Give market participants 90 days; any that are not listed in 90 days are declared void; let the participants sue each other if they can't prove capital adequacy.

3. Force leverage by all institutions to no more than 12:1. The SEC intentionally dropped broker/dealer leverage limits in 2004; prior to that date 12:1 was the limit. Every firm that has failed had double or more the leverage of that former 12:1 limit. Enact this with a six month time limit and require 1/6th of the excess taken down monthly.

I am sure you have a 4,5,6 And I would agree with you...

http://finance.yahoo.com/marketupdate/overview?u

(edit because of serious serious munging)

Very techie but interesting never the less, thanks for that, one might have to read it twice, but it does make sense.

Aye Tap...

Love to you amigo.

This would have been a deal maker. Period.

It might have hurt the investors (less in numbers than most would think) but it would have been better even for those with very significant assets. Many (most actually) did not understand the nature of these instruments. Making them more transparent and therefore easier makes a lot more sense.