Per Bloomberg article:

Myron Scholes, the Nobel prize- winning economist who helped invent a model for pricing options, said regulators need to "blow up or burn" over-the-counter derivative trading markets to help solve the financial crisis.

"The markets have stopped functioning and are failing to provide pricing signals," Scholes, 67, said today at a panel discussion at New York University’s Stern School of Business. Participants need a way to exit transactions and get a "fresh start," he said.

The "solution is really to blow up or burn the OTC market, the CDSs and swaps and structured products, and let us start over," he said, referring to credit-default swaps and other complex securities that are traded off exchanges. "One way to do that, through the auspices of regulators or the banking commissioners, is to try to close all contracts at mid-market prices."

Scholes also recommended moving the trading of credit- default swaps, asset-backed securities and mortgage-backed securities to exchanges to allow for "a correct repricing" of the assets. The securities are currently traded between banks and investors, without any price disclosure on exchanges. (My emphasis)

thing):

Holder could ask for and get well-organized FBI white-collar teams. The personnel hole caused by shifts to antiterrorism would have to be more than filled to their pre-9/ll staffing if the incoming administration decides to break this criminogenic cycle rather than merely address it symbolically.

Black contends that aggressive prosecution would be good for the economy because it may help prevent cheating and fraud that inevitably cause bubbles and destroy wealth. The Sarbanes-Oxley law passed in Enron's wake, for instance, is supposed to make corporations now keep the kinds of documents necessary to assess criminality. Whether the CEOs, CFOs, and others who controlled the current frauds will do so is another matter.

"Don't count on them keeping records for long," Black warns. "It's time to get out the subpoenas." (My emphasis)

The last is particulary scary and worrisome, given that this was published on January 27, nearly six weeks ago -- and the Obama administration seems to be signaling that determining what really happened and who did what is not on the table. You know, that old accountability crap which is only for the little people?

Thanks for bringing this to our attention -- I hadn't been aware something this wideangle had been published then.

There is no excuse for Dems, Obama, and admin folk to say they're behind the curve.