Wednesday, January 18, 2012

Real Reason for Lehman Bros. Collapse?

Tuesday, January 17, 2012 – by Staff Report

Finance tribunal opens to settle disputes ... Disputes arising from complex transactions can be put for possible resolution at the world's first international specialist finance tribunal from Monday. The Hague-based tribunal, funded by the Dutch government, aims to build up internationally recognised legal precedent in an area that can be opaque to even the most senior national judges who have previously heard disputes over credit derivatives, collateralised debt obligations or other exotic products that gained notoriety during the financial crisis. – Financial Times
Dominant Social Theme: Global justice is inevitable, and necessary. It's not totalitarian, mind you, merely part of the process of "rationalizing" the decision-making process so everyone knows where they stand.
Free-Market Analysis: "They" are at it again. Supposedly the Dutch government had the bright idea to create a global "financial tribunal." But who gets up in the morning and decides that what the world needs is a better way to resolve disputes about derivatives and other artificial securitized instruments?
The problem is NOT that there is no prestigious and final word from a judicial authority on these insane instruments. The problem is that they exist at all.

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