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View Diary: Taibbi: My Advice to WS Protestors w/update on picture (157 comments)

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  •  Worst idea in the world (1+ / 0-)
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    Trying to make something/anything default proof.  The reason why the repo market has exploded and eats up so many dollars out there right now is that it is also somewhat "default proof".  If an entity goes bankrupt their repos have to be paid first, accounts are frozen to all other creditors except those holding their repos.  So repos are the safest investment now, safer than anything else out there under such market distorting laws.  It leaves corporations with the incentive to become asset depleted gutted worthless shells as well.

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