Munger Favor's 100% Ban On (CDS) Market.

My original interest was to find the root cause of the negative feedback loop we are now experiencing in today's economy, and understand how this great Nation could flip-flop from the CAPITALISTIC FREE market system of a year ago, to one of escalating BIG GOVERNMENT and a socialist mindset. In less than 48-hours of writing my blog on the Credit Default Swap dilemma, my suspicions have been confirmed by an interview done on Bloomberg yesterday on May 1st-2009 with Charles Munger second in command at Berkshire Hathaway and Warren Buffets right hand man. Mr Munger says that if he were the Governor of the world he would ban the CDS market entirely for good, basically because of the systemic damage caused to the market by the greed of a few short-sided Individuals. He goes on to state that this can only be accomplished by intervention by the Federal Government installing regulation to prevent the excesses that caused the current fiscal crises. I myself had no idea that the CDS market was so vast, until I ran across the raw numbers in the Time magazine article i blogged about on Thursday , the CDS market at 45-trillion dollars was according to the International Derivatives Association over twice the size of the entire 2007 value of the U.S. STOCK MARKET, and over four times as big as the entire 2007 U.S. mortgage market. We all now know the motive (GREED) and now the process (CREDIT DEFAULT SWAPS) that these influential Individuals have been using to wreak economic havoc on this country.