Policy punting

Macro Man has a nice link to a tinfoil hat research site, an embarrassing chart, and a whole set of policy prescriptions that I mostly agree with.

• Change the regulation and/or incentive structure of the ratings agencies.
• Migrate the CDS market to exchanges with position limits and heavy margining.
• Grant loans and mortgages held on balance sheet more favourable tax treatment than those sold off to a secruity factory.
• Re-institute some sort of Glass-Steagall split between commerical and investment banking.
• Create tax incentives for investment banks to function as partnerships rather than as publicly listed companies.
• Scrap the dollar if you want, but get ready to pay.