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...first president of the European Bank for Reconstruction and Development, Attali won fame for calling the U.S. financial collapse as early as 2006 - giving him more credibility than the average soothsayer. However, many of his predictions range from the absurd to the, well... predictable. His belief that Israel must keep its status as a regional power in order to survive is not exactly rocket science, while his belief that a utopia of altruistic "transhumans" will emerge from the ashes of mid-21st century planetary warfare is a bit hard to swallow...

Author: /time Magazine | Title: What the World Will Look Like by 2050 | 4/13/2009 | See Source »

...more outrageous predictions notwithstanding, Attali correctly notes that our future is not inevitable. Mankind must learn how to appropriately respond to the crises and opportunities that await us, and grow cognizant of the fact that large-scale violence can be so dangerous to humanity so that we become "aware of the need for a radical change in attitude." Whether his predictions are worth taking seriously or not, they all inevitably turn on the endless capacity of human resilience - a notion that appears to be the only true constant for the future, and the most reassuring...

Author: /time Magazine | Title: What the World Will Look Like by 2050 | 4/13/2009 | See Source »

...Moody’s. To make a low-risk purchase of a CDS, a firm needs to buy from an insurer with an excellent credit rating. If any of these ratings are inaccurate or get downgraded, this will dramatically affect the CDS and cause panic. Therefore, the government must institute a reasonable collateral requirement for the sale of CDSs. Further, rating agencies must closely monitor investing schemes that use insurance from highly rated firms like AIG to make risky investments in poorly rated firms...

Author: By George Hayward, CRIMSON STAFF WRITER | Title: Regulating Credit Default Swaps | 4/12/2009 | See Source »

...ensuing panic results in a lack of confidence, since one cannot be sure if a company is doing as well as it claims to be. Therefore, the government must make CDS transactions a matter of public record...

Author: By George Hayward, CRIMSON STAFF WRITER | Title: Regulating Credit Default Swaps | 4/12/2009 | See Source »

...that back investments in mortgage-backed securities, this is especially potent. There is no way to insure a disaster that in turn causes other disasters. It would be like providing health insurance when one heart attack induces a chain of other heart attacks in the population. Therefore, the government must regulate CDSs to guarantee that insurance firms have the capital to remain solvent...

Author: By George Hayward, CRIMSON STAFF WRITER | Title: Regulating Credit Default Swaps | 4/12/2009 | See Source »

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