<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/0f2fdab3-7f31-491b-a4e0-02a00a9a7daf/FBE556E0-51CF-43E1-A7A1-55FE8D48C2AE/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate" href="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate" style="font-size: 11px;">www.dailykos.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate"><H2><SPAN class="diaryTitle">Scientists *Prove* Toxic Assets are Impossible to Regulate</SPAN> </H2></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate"><P>This groundbreaking result was the work of several <A href="http://en.wikipedia.org/wiki/Computational_complexity_theory">complexity theorists</A> - Sanjeev Arora, Boaz Barak, Markus Brunnermeier, and Rong Ge in their new paper <A href="http://www.cs.princeton.edu/~rongge/derivative.pdf">Computational Complexity and Information Asymmetry in Financial Products</A>.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate"><P>The "what to do about it" question is as counter-intuitive as the math. The problem isn't how to stop the trading of complex CDOs/CDSs. The problem is that if this paper is supported by other complexity theorists, no buyer should ever buy another complex CDO/CDS, at any price ...</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailykos.com/storyonly/2009/10/18/794518/-Scientists-*Prove*-Toxic-Assets-are-Impossible-to-Regulate"><P>The problem isn't how to stop the trading of complex CDOs/CDSs; if this paper is right, that will stop. <STRONG>The problem is the capital already invested in complex CDOs/CDSs totals several times the world's annual GDP, according to this paper, and all of that capital will be inextricably frozen for the lifetime of these instruments.</STRONG> That is a giant, indissoluble clot in the world's financial arteries. </P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/FBE556E0-51CF-43E1-A7A1-55FE8D48C2AE/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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