Help Fools - I Need Your Vote for Round 2 :)
First of all, let me convey my sincere thanks to those of you who read my article and voted in round 1 of March Madness... regardless of which way you voted. :) Bolstered by your kind support, the article advanced the Glass-Steagall repealers to the second round of the blame game against an extremely tough opponent: Alan Greenspan. That first round result stands at 66% to 34% (with 670 votes cast) in favor of the Glass-Steagall repealers being more directly culpable for the financial mess we're in than even the king of low interest rates and the peddler of ARMs: Mr. Greenspan.
As I express in the beginning of my submission for Round 2, I think the fact that Fools selected Glass-Steagall and derivatives over the better-known Fed chairs speaks volumes about how well-informed and intellectually vigorous this community is. That's why I say:
"I'm proud of you, Fools!
Alan Greenspan certainly helped set the stage for this crisis by fostering excessive liquidity in the credit markets. Ben Bernanke is presently dumping indebtedness upon unborn generations of Americans in what I consider a fatally flawed response strategy.
Nonetheless, you well-informed Fools peered beyond those alluring scapegoats and voiced your greater discontent with the fateful extinguishing of Glass-Steagall and the creation of those convoluted instruments called derivatives. By selecting these factors over Greenspan and Bernanke, you exhibit a keen understanding of the historic events now unfolding."
Now, onto Round 2...
I invite you all to please have a look at the article, consider both arguments, and vote your conscience. Those who know me well will find it odd, as Dan points out in the first portion, that I would find myself pitted against derivatives in this contest. The size and fragility of the global derivatives market comprises a major basis for my bullish position on gold, but the underlying truth remains that efforts first to relax Glass-Steagall back in the 1980s, and then culminating in its removal by 1999, paved the way for the explosion in the global derivatoves market which followed just in the last decade. Even if, as I do, you feel derivatives are in the top echelon of causes of this crisis, I urge you to consider the logic of my argument, and reiterate my promise to highlight the importance of derivatives going forward of you'll see fir to vite me through to the next round.
Thanks so much for reading, for sharing your thoughts, and of course for casting your vote... whichever way you decide to vote.