The Clearing House Debacle

The way clearing houses do things is they create momentum. They're a natural momentum model because the better something's doing, the less risk you need to put with it. So what it does is it creates this momentum model. And then when the momentum breaks, they suddenly go, okay, now it's really risky and we mispriced it massively. All just seems a bit stupid to me. Why don't they just go back to allowing the people taking the risk to take the risk would be a good system? The banks have like written the long notes about how deep into this failed reform I said, so let's finish up with our five questions for all of us."