Curing Toxic Assets - And Why We're Doing it Wrong

When you sweep dirt under the rug, you aren't really cleaning the house.

...the solution to the problem lies in stricter regulation of credit derivatives that forces them to be tied directly to underlying assets. Unfortunately, the plan to "detoxify" mortgage and debt-backed derivatives announced by Secretary of the Treasury Timothy Geithner comes up short in this area.

A great post by Wizbang!