Clinton: Rubin And Summers Gave Me Wrong Advice On Derivatives, And I Was Wrong To Take It

I agree 100% and I don't have any illusions that Clinton would go that far, but the country put him in the position of power that allowed him to game the system for so much wealth, and he owes them the truth about the basic, proven and well-known (to the experts) laws of economics which Friedman-Reaganomics violates.

It is not too complex for Bubba to explain to *everybody*. Derivatives may provide genuine value when available only to producers of the commodities they trade, by subduing price fluctuations, which are inconvenient to both producers and customers. The problems with derivatives arose when speculators were allowed to deal in them *without* producing the products from which the commodities are derived, notably mortgages.

In general, the problem with his economic model is treating abstracted commodities as equivalent to the real goods and/or services from which they are abstracted, or derived, when in fact abstracted values are inherently volatile without regulation. I *could* have explained that in simpler language, but I know that you, and all my other HuffPost friends can understand, and I know the entire country isn't reading my comments. It's the job of prominent leaders, and former leaders like Bill Clinton, not mine, to make the truth understandable to *their* entire national audience.

The "free market" arguments for de-regulating derivatives were bogus on their face, and the former President owes us a plain statement of that *fact* regardless of what motivated him then.
About Financial Crisis
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