http://www.reuters.com/article/bondsNews/idUSN1037771320080710 Paulson: Derivatives make markets more efficient WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson on Thursday told lawmakers that off-exchange derivatives, used by firms to hedge against a range of risks including credit and interest rates, have been a good tool. "These contracts have done a lot to make the markets more efficient," Paulson told the U.S. House Financial Services Committee in answering questions after testifying on the need for widespread reforms in regulating financial markets. But both Paulson and Federal Reserve Chairman Ben Bernanke cautioned that improvements are needed in the operations of these markets, particularly in processing and clearing. The Federal Reserve is closely involved in the process to improve the post-trade, clearing and settlement process, the management of risks associated with this, and the transparency and standardization of these complex products, Bernanke said, adding: "This is a very high priority for us.".. rest of article here: http://www.reuters.com/article/bondsNews/idUSN1037771320080710
who put Paulson up to taking the job in the first place.. GS sends its Messiahs out from the mother ship to protect its flanks Paulson really looked uncomfortable trying to explain the obvious..
Excellent Commentary All ................................................................... I would like to see a public debate between Warren Buffett and GS Paulson about just how good derivatives are.........