Tom Usher wrote or added | This is a sideline in the overall debate, but it points out underlying problems across-the-board.
Where does hedging ever stop? It doesn't ever have to if it's completely unregulated. What that would mean though is that the insurance underwriter of the futures betting against the ticket sales as a hedge would turn around and buy a future betting against its bet that the ticket sales will remain high enough that it doesn't have to pay off on the movie-ticket sales speculator's bet/hedge.
What this does then is nothing but add layer after layer of transaction fees and commissions while in the end, the losses are still transferred to the general economy, only magnified by all the costs associated with the endless chain of transactions. It's a bubble. Also, who will rate the carriers? Who will guarantee that these "securities" aren't bundled with junk and given an A rating, as happened with mortgages leading to the current economic mess?
Contrary to statements of those in the exotic derivatives industry, this type of thing did absolutely nothing good for the economy concerning housing. It made things so bad that the economy literally crashed over it.
Blanche Lincoln knows that. She knows the history of the debate when the waves of deregulations were pushed through. She knows about the women, a prime example being Brooksley Born, who went before her who correctly predicted that the deregulations and non-regulations would cause a disaster.