It's true that monetary policy was too lax for too long, and the government encouraged lending to people who were unlikely to repay their loans.

The Orderly Liquidation Authority prescribed by Dodd-Frank should be repealed and replaced by an amendment to the U.S. Bankruptcy Code which would operate to prevent cross-default provisions from impacting derivatives books so long as mark-to-market payments are being made in a timely fashion.

Creating a regulatory system that reflects the modern-day realities of financial markets is not as difficult as it may appear.

Paul Singer Quotes