Good article. The last paragraph includes insight from former Fed Chairman Paul Volcker -- his recommendations include forcing loan originators to retain the first losses; requiring prime brokers to stop lending to hedge funds that don't disclose their balance sheets; and bringing the trading of credit derivatives onto exchanges. Volcker managed inflation in the 70s, so his insight might be worth considering here (though I hate the idea of putting credit derivatives on exchanges; OTC trading is the future). -- KM


Yet $1 trillion is the amount of defaults and writedowns Americans will likely witness before they emerge at the far side of the bursting credit bubble

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